9911796707
TMI Blog2011 (12) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... 2003 and 872 of 2004 but also relate to the same dealer. The petitioner, a business firm in plywoods and general goods, is a registered dealer on the rolls of the Commercial Tax Officer (CTO), N.S. Road, Hyderabad. For the assessment year 1995-96, the firm was assessed allowing the rebate of Rs. 2,44,961 as per section 5(3) read with entry 17 of the Sixth Schedule. The rebate was with reference to the tax paid by the dealer at the preceding point of sale on plywood. Be that as it is, the assessment was revised by the Deputy Commissioner of Commercial Taxes, Charminar Division, Hyderabad, reversing the rebate allowed by the assessing authority. Being aggrieved by the order of the revisional authority dated October 12, 2002, the petitioner f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ires the dealer to discharge the burden of proving that the sale or purchase effected by the dealer is not liable to tax or is liable to be taxed at the reduced rate. The point that would arise for consideration is whether the petitioner is entitled to be taxed in accordance with section 5(3) read with second proviso to Explanation II of the Sixth Schedule? The point The relevant provisions for appreciating the point are section 5, relevant part in the Sixth Schedule and rule 5 of the Andhra Pradesh General Sales Tax Rules, 1957 ("the Rules", for brevity), which are quoted hereunder: S. 5. Levy of tax on sales or purchases ofgoods.-(1) Save as otherwise provided in this Act, every dealer shall pay a tax under this Act for each year on e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n board, hard or soft wall-boards or insulating board and veneered panels, whether or not containing any material other than wood; cellular wood panels, building boards of wood-pulp or vegetable fibre, whether or not bonded with natural or artificial or reconstituted wood being wood shavings, wood chips, saw-dust, wood flour or other ligneous waste agglomerated with natural or artificial resins or other organic binding substance in sheets, blocks, boards or in any other form and includes flush doors. At every point of sale in the State 15 paise in the rupee 12 -do15 -do- 01.04.1995 01.01.2000 15.11.2000 First proviso omitted. Provided further in respect of goods other than liquor mentioned in this Schedule, tax to be paid at any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of a retail dealer which relates to second and subsequent sales of the goods referred to above to other dealers for effecting accommodation sales by the latter shall also be exempt from tax, if such turnover does not exceed five per cent of the total turnover of that dealer in a year, and a certificate is produced in such manner and form as may be prescribed. R. 5. (1) Save as provided in sub-rules (2) to (8), the turnover of a dealer for the purposes of these Rules shall be the total amount received by the dealer as the consideration for the sale of the goods. (2) omitted (3) In the case of goods liable to tax under section 6A, the amount paid by the dealer for the purchase of such goods shall be the turnover of the dealer in such go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to necessarily produce the proof of the total sale consideration received and the sales tax levied and paid at the previous point of sale. If the same is not shown, Explanation II would be attracted which contains the formula for determining the amount of tax levied at the preceding point of sale. The CTO allowed the tax rebate under the Sixth Schedule for both the years based on cash book, ledger, purchases and sales bills. It was to the tune of Rs. 5,66,166. The Revisional Deputy Commissioner, however, on verification found that allowing rebate on the entire local purchase of plywood without considering the opening and closing stock is not permissible. Therefore, a show-cause notice was issued. In response thereto, the petitioner submit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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