2001 (3) TMI 873 - SC - VAT and Sales Tax

Whether coal and coal-ash (cinder) are to be treated as the same commodity or as different commodities for the purpose of taxation under the Andhra Pradesh General Sales Tax Act 1957? Whether coal-ash is a product of the petitioner s industrial unit and whether the sale of coal-ash by the petitioner is eligible for exemption under G.O. Ms. No. 606 dated April 9 1981? Held that - Appeal allowed. The coal-ash that is produced as a result of the burning of coal as fuel is a product of the appellant- industry though it might not be the principal product for which the industry was established. Even so being a product of the industry it is entitled to the exemption given by the said order.

Summary

The Supreme Court upheld the High Court's decision regarding the taxation of coal and coal-ash as different commodities. However, the Court ruled in favor of the appellant, stating that coal-ash is a product of the industrial unit and eligible for exemption under a specific government order. The civil appeals were allowed with no costs.