TMI Blog2004 (11) TMI 559X X X X Extracts X X X X X X X X Extracts X X X X ..... 15(c) of the Act and thus determined the tax liability of the respective dealers. However, the revisional authorities issued notices after a lapse of more than one year, proposing to revise the said assessments on the ground that the assessments as framed granting the rebate in terms of section 8A read with section 15(c) was in excess of the relief to which the dealers are entitled. Thereafter, the revisional authority revised the assessment in terms of the notice observing that the net tax due arrived was the difference between the central sales tax collections and the rebate amount. The central sales tax thus payable was much lower than the amount actually collected. Therefore, the dealer was not entitled for rebate as computed by the assessing officer, but was eligible only to a lesser sums (Rs. 1,76,700 in W.P. No. 15159 of 2004) and therefore, revised the assessment, holding that the assessments as framed are irregular and prejudicial to the interest of the Revenue, and thus modified the assessments. In the normal course, these writ petitions would not have been entertained by this court as there is a remedy of appeal to the Appellate Tribunal in terms of section 21 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal ignoring an earlier decision rendered by a ThreeMember Bench of the Tribunal in Badarinadh Rice Mill v. State of A.P. [1999] 29 APSTJ 181. It is stated that the said judgment was rendered by a Three-Member Bench as early as on July 27, 1999 and without even referring to the said decision, the later Two-Member Bench decided the issue on July 21, 2000 taking totally an illegal and illogical view of the provisions in question. The learned counsel also contended that almost identical issue was considered by this court in State of A.P. v. S. Laxminarayana Gupta [1995] 21 APSTJ 21, where this court considered the provisions of section 8A(1)(a) and the tax deductible as and by way of rebate in respect of the tax levied on the paddy, which yielded the said rice. Though the said judgment is binding on the Tribunal, the Tribunal failed to consider and follow the same. Almost similar issue was considered by a division Bench of this court in Sri Laxmiganapathi Enterprises v. Commercial Tax Officer [2000] 117 STC 338; [1999] 29 APSTJ 227, while considering almost identical formula that contained in section 8A(1)(a) of the Act, under rule 6(1)(l) of the Andhra Pradesh General Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very sales tax law of a State shall, insofar as it imposes or authorises the imposition of a tax on the sale or purchase of declared goods, be subject to the following restrictions and conditions, namely: (a) to (b) . . . (c) where a tax has been levied under that law in respect of the sale or purchase inside the State of any paddy referred to in subclause (i) of clause (i) of section 14, the tax leviable on rice procured out of such paddy shall be reduced by the amount of tax levied on such paddy. Explanation III to Schedule III of APGST Act, 1957. For the purpose of items 21 and 22, where a tax has been levied under this Act in respect of the sale or purchase inside the State of any paddy, the tax leviable on rice procured out of such paddy shall be reduced by the amount of tax levied on such paddy. On a perusal of the above provisions, it is clear that the term turnover as defined means the aggregate of the sale prices received and receivable in respect of any goods in the course of inter-State trade or commerce and determined in accordance with the provisions of the Act and the Rules made thereunder. Further, the determination of the turnover is provided under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Rs. 4,42,883 (representing tax paid on paddy). In order to understand the said view of the revisional authority, as the revisional order does not contain the reasons, it would be proper to consider the decision of the Tribunal that was followed by the revisional authority. In Satyanarayana Raw and Boiled Rice Mill's case [2002] 34 APSTJ 153, the matter came up in appeal before the Tribunal when the dealer questioned the revision order of the Deputy Commissioner (CT) under which the order of assessment under the Act was revised. In that case, the dealer is similar to the present dealers and was carrying on business as a rice miller. The dealer was assessed by the Commercial Tax Officer under the Act determining the gross turnover at Rs. 2,00,79,774 and net turnover at Rs. 1,89,99,387. While allowing rebate on the corresponding paddy involved in the inter-State sales of rice and broken rice, the Commercial Tax Officer has allowed deduction of Central sales tax collected from the aggregate of the sale price of rice and broken rice sold in inter-State trade. The Deputy Commissioner (CT) while revising the assessment observed that the tax worked out as per the formula on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing it with aggregate of the sale price. The said interpretation given by the Tribunal is clearly against the plain and simple language contained in the relevant provisions. This issue was considered by a division Bench of this court in S. Laxminarayana Gupta's case [1992] 21 APSTJ 21, as early as in the year 1994. In that case the assessing officer framed assessment for the year 1981-82 after deducting an amount of Rs. 2,72,899 from the total turnover applying the formula contained in section 8A(1)(a) of the Central Sales Tax Act, 1956. The said order of assessment was revised by the Deputy Commissioner on the premise that the said assessment is prejudicial to the interest of the Revenue. On further appeal to the Tribunal, the Tribunal set aside the order of the Deputy Commissioner and upheld the application of the formula by the assessing officer for ascertaining the net turnover. The Division Bench while considering the provisions of section 8A held that whenever the aggregate of the sale price is inclusive of the Central sales tax, the tax component has to be arrived at by applying the formula prescribed in section 8A(1)(a) and rebate has to be allowed if the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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