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2005 (10) TMI 507 - HC - VAT and Sales TaxTax revision - rice millers and registered dealers under the APGST Act - revision of assessment u/s 20(2) - Whether gunnies which have suffered tax within the State of A.P. can, u/s 6-C of the Andhra Pradesh General Sales Tax Act, 1957 (APGST Act) again be subjected to tax when they are sold along with the contents, despite the prescription in entry 19 of the First Schedule that gunnies, sold with or without its contents, are liable to be taxed only at the point of first sale in the State? - HELD THAT:- We are unable to appreciate the distinction sought to be made by Sri V. Bhaskar Reddy, learned counsel for the respondents, between sections 5, 5-B, 5-C, 5-F, 6 and 6-A on the one hand and section 6-C on the other. The expression "shall pay tax" used in sections 5, 5-B, 5-C, 5-F, and 6-A and "shall be liable to tax" used in section 6 are not dissimilar to the expression "tax shall be levied and collected" as used in section 6-C. Further the heading of section 5 is "levy of tax on sale or purchase of goods", that of section 5-A is "levy of tax on turnover", section 5-F is "levy of tax on transfer of property in goods involved in the execution of works contract", section 6-A is "levy of tax on turnover relating to purchase of certain goods" and section 6-C is "levy of tax on packing material". Thus sections 5, 5-A, 5-F, 6-A and 6-C are provisions which relate to levy of tax. If sections 5 and 5-A are to be held as charging sections we see no reason, in the absence of any discernible distinction, to hold that section 6-C is not. Sri V. Bhaskar Reddy, learned counsel for the respondents, would urge, rightly so, that the interpretation placed by us on section 6-C would result in gunnies being taxed at multiple points. If that is what the Legislature intended, by providing a non obstante clause in section 6-C, and in subjecting section 5(1) to the other provisions of the APGST Act including section 6-C, such a consequence would indeed be the result and must be accepted. It is also true, as contended by Sri V. Bhaskar Reddy, learned counsel for the respondents, that entry 19(iii) was inserted, in the First Schedule, by Act No. 30 of 1997 with effect from May 12, 1997 after section 6-C was amended by Act No. 22 of 1995 with effect from April 1, 1995. As referred to supra, prior to May 12, 1997 "gunnies" were enumerated under entry 157 of the First Schedule and the point of levy then was also at the point of first sale in the State. The First Schedule, when "gunnies" were under entry 157 and now under entry 19(iii), details goods in respect of which single point tax is leviable u/s 5. While bringing "gunnies" under entry 19(iii) from entry 157 with effect from May 12, 1997 the State Legislature did not choose to amend section 6-C or to omit the non obstante clause therein. By Act No. 30 of 1997 "gunnies" are now classified as two sub-entries under entry 19(iii), "gunnies when sold without contents" under entry 19(iii)(a) and "gunnies when sold with contents" under entry 19(iii)(b). This subclassification is obviously to bring gunnies, which are packing material, in tune with the requirements of section 6-C. Since the point of levy of tax on gunnies, both prior to its amendment, under entry 157, and after the amendment with effect from May 12, 1997 under entry 19(iii), is at the point of first sale, nothing turns on its amendment by Act No. 30 of 1997, while interpreting section 6-C of the APGST Act. We therefore hold that gunnies which have suffered tax within the State of A.P. can, u/s 6-C of the APGST Act, again be subjected to tax when sold along with its contents despite the prescription in entry 19(iii) of the First Schedule that gunnies, sold with or without its contents, are liable to be taxed only at the point of first sale in the State. These batch of tax revision cases are accordingly allowed and the order of the Sales Tax Appellate Tribunal set aside. There shall however be no order as to costs.
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