TMI Blog1996 (11) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... have summarily noted the facts of the case. The petitioner is a registered dealer under the Andhra Pradesh General Sales Tax Act, 1975 (hereinafter referred to as "the Act"). The petitioner is a re-roller making products out of ingots, billets, etc., such finished products are rounds, angles, flats, etc. The matter relates to the assessment year 1980-81. For that year the petitioner claimed exemption on sale of its products under G.O. Ms. No. 88, dated January 28, 1977. The Commercial Tax Officer exempted such finished products from the payment of tax under the Act on the ground that the raw material purchased by the petitioner suffered already tax and accordingly the petitioner was entitled for the exemption of tax under G.O. Ms. No. 88, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he petitioner is not entitled to the exemption. 5. It is not in dispute in this case that but for the alleged exemption under G.O. Ms. No. 88, dated January 28, 1977 the petitioner would be liable to pay the tax. In order to show that the petitioner was entitled for such an exemption the petitioner should necessarily prove that the raw material out of which the finished goods was manufactured suffered the tax. It is relevant at this context to extract the G.O. Ms. No. 88, dated January 28, 1977 and the same is as under: "In exercise of the powers conferred by sub-section (1) of section 9 of the Andhra Pradesh General Sales Tax Act, 1957 (A.P. Act 6 of 1957), the Governor of Andhra Pradesh hereby makes an exemption with effect from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is position has been made clear vide subsequent G.O. Ms. No. 729, Revenue(S) dated June 17, 1977 by which G.O. Ms. No. 88, dated January 28, 1977 was amended with effect from April 1, 1976 and the same is extracted as under: "In exercise of the powers conferred by sub-section (1) of section 9 of the Andhra Pradesh General Sales Tax Act, 1957 (Andhra Pradesh Act 6 of 1957), the Governor of Andhra Pradesh hereby makes an exemption with effect from 1st April, 1976, the re-rolled finished products of the steel re-rollers from the tax payable under the said Act, subject to the condition that the tax has been levied under the said Act on the sale or purchase of the steel scrap or ingots or billets from which such finished products were obtained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of such ingots/ billets has been subjected to tax under the said Act." 8.. From the Government Orders issued from time to time as referred to above it is clear that the Government Orders contemplate the three stages of production process. The first is the scrap stage, the second is the ingots and billets and the third stage is of re-rolled rounds, angles, flats, etc. The first stage is used as raw material for the second stage (as a finished product) and the second stage is used as raw material for the third stage as finished product. If the stage used as raw material is subjected to tax the next stage is exempted from tax. Hence for the last stage of re-rolled rounds, angles, flats, etc., it is not enough if at the scrap st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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