TMI Blog1968 (6) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... al Tax Officer, Amalapuram, on a scrutiny of these returns determined a turnover of Rs. 2,47,588.78 and proposed to levy a tax at 10 per cent as all 'C' Forms were not filed. On a show cause notice being issued on 25th October, 1966, calling for objections by 5th November, 1966, the petitioner asked for time which was given till 8th November, 1966. Certain other 'C' Forms were filed and ultimately the tax levy was determined in accordance with the material placed before the officer, at 3 per cent on Rs. 2,23,240.97 covered by 'C' Forms, and at 10 per cent on a turnover of Rs. 24,347.81 not covered by 'C' Forms and a demand for a tax amounting to Rs. 9,132.03 according to the said rates was made on the petitioner. It is this demand that is c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 5(3)(a) of the State Act and, therefore, the Central Act had not made a departure in the manner of levy of tax on the specified goods which are taxed only at the single point under the State Act. In other words, whatever is taxable under the State Act alone is taxable under the Central Act, so that if under the A. P. General Sales Tax Act the transaction in question cannot be taxed, inter-State sales cannot also be taxed under the Central Sales Tax Act. The learned Government Pleader on the other hand contends that their Lordships of the Supreme Court were not considering section 8(2A) of the Central Act which authorised the Central Act to levy tax in cases where goods were not totally exempt or where they were exempt at specified s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to tax at the rate of 2 paise in the rupee at each point of sale with effect from the 1st August, 1963. The coconut merchants of Andhra Pradesh represented to the Government that the levy of tax on watery coconuts at multi-point would adversely affect the trade and requested that a single point tax may be levied on watery coconuts at 2 paise in the rupee. As relief from the levy of multi-point tax was considered necessary by the Government pending amendments to the Act, instructions were issued to the assessing authorities to levy tax on watery coconuts at the point of last purchase in the State during the period from the 1st August, 1963, to the 31st March, 1965, and a notification was also issued under section 9 of the Act, by which the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of last purchase in the State during the period from the 1st August, 1963, to the 31st March, 1965. 2 paise in the (b) At the point of first purchase in the State. 3 paise in the rupee. Explanation.-The expression 'watery coconuts' in item 10 includes all coconuts other than coconuts falling under item 5 of the Third Schedule and tender coconuts falling under item 9 of the Fourth Schedule." "5. Coconuts. At the point of last purchase in the State. 2 naye paise in the rupee. Explanation J.-The expression 'coconuts' in item 5 means dried coconuts, shelled or unshelled including copra, but does not include watery coconuts falling under item 10 of the Second Schedule and tender coconuts falling under item 9 of the Fourth Schedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the amendment would not apply and operate to affect only the transactions during that period. If, as contended by Mr. Suryanarayana Murthy, this G.O. Ms. does not apply, then it is obvious that multi-point tax would be attracted by all transactions between 1st April, 1965, and 23rd December, 1966. But that was not the intention of the Government or of the Legislature, because, though as a result of Justice Gopalakrishnan Nair's judgment, there could be a levy of multi-point tax on watery coconuts, the tax has been specifically confined either to the last purchase, or the first sale or the first purchase according as it fell within that particular period enumerated above. If the sales tax in respect of these transactions in question coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such goods shall be nil or, as the case may be, shall be calculated at the lower rate. Explanation.-For the purposes of this sub-section a sale or purchase of goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State if under that law it is exempt only in specified circumstances or under specified conditions or in relation to which the tax is levied at specified stages or otherwise than with reference to the turnover of the goods." In terms of the Explanation to sub-section (2A) of section 8 the learned Advocate contends that the watery coconuts are not exempt under the notification imposing a levy at the first sale point. This cannot be disputed. But when this effect is sought to be appl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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