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2014 (6) TMI 762 - HC - VAT and Sales TaxDetermination of rate of tax - Tax on sale of gutkha - Held that:- in Section 8 of Andhra Pradesh General Sales Tax Act, 1957, there was a provision that a dealer, who deals in the goods specified in the Fourth Schedule thereto, shall be exempt from tax thereunder in respect of such goods. Therefore, all the goods, which were specified in Fourth Schedule of the Andhra Pradesh State statute, levying tax on sales of goods in the State of Andhra Pradesh, were exempted from tax by virtue of a specific provision contained in that statute i.e. Section 8 of Andhra Pradesh General Sales Tax Act. There was an entry no.7 in Fourth Schedule of Andhra Pradesh statute, which mention the word "tobacco". There was an explanation also therein, which says that goods mentioned in Entry 7 "shall be goods included in the relevant heads and sub-heads of the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957, but does not include goods where no additional duties of excise are levied under that Schedule". - tax imposed upon sale of Gutkha in the case in hand treating it to be 'unclassified item' and imposing tax at the rate of 10% is absolutely valid and correct. - Decided in favor of revenue. Sale of used generator in running condition - whether to be construed as old discarded and unserviceable machinery - held that:- Words "discarded, unserviceable, obsolete" should be read ejusdem generis with the word "old" so as to apply aforesaid notification to such machineries which are virtually unusable, unworkable or unfunctional. However, I do not find any reason to read all these terms ejusdem generis since all these terms have a distinct meaning. Moreover, use of the word "or" between "unserviceable" and "obsolete" clearly shows intention of State that all these words have been used to cover different situations. If an old machinery is sold even if it is in running and usable condition, in my view, it would be covered by entry 29. Therefore, question D is answered in favour of Revenue by holding that sale of generator is covered by entry 29 of notification dated 15.1.2000 as amended by notification dated 17.02.2000 w.e.f. 17.1.2000 - Decided in favor of revenue. Rate of tax on sale of old and used Generator - Held that:- rate of tax would be only 5% and not 8% - Decided in favor of assessee.
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