TMI Blog2012 (3) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... For the Appellant : K. Raji Reddy For the Respondent : P. Balaji Varma, Special SC for CT, ORDER:- The order of the court was made by V.V.S. RAO J. These two tax revision cases under section 22(1) of the Andhra Pradesh General Sales Tax Act, 1957 ( the Act ) are against the common order dated February 20, 2009 in T.A. Nos. 671 and 672 of 2005 passed by the Sales Tax Appellate Tribunal, Hyderabad (STAT). The petitioner and the question involved being common, the two cases are being disposed of by this order. The petitioner is a works contracts company. They are registered dealers on the rolls of the Commercial Tax Officer (CTO)-III, Kurnool, under the Act. Their turnover has to be charged to sales tax under section 5 read with section 5F of the Act. They however opted for composition of tax payable under section 5F of the Act. Such benefit is available under section 5G of the Act. During the assessment years 1998-99 and 1999-2000, the petitioner executed electrical contracts with the Andhra Pradesh State Electricity Board (APSEB). The CTO-III completed the assessment on January 22, 2001 duly allowing composition and levied the tax accordingly. The peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 48 VST 107 (AP). The special counsel for commercial taxes would submit that the works contract being a deemed sale, is chargeable under section 5 of the Act, and section 5F read with section 5G of the Act being exceptions to charging section, they have to be interpreted strictly. As section 5G does not enable a dealer to opt for composition in relation to electrical works contract as notified by the Government under section 5G(2) of the Act, the petitioner who executed electrical works contracts during relevant years is not eligible for composition. In the background facts and having regard to the rival submissions, the only point for consideration is whether the revisional authority was justified in reversing the appellate order of the ADC. We may mention that before the ADC the petitioner did not specifically challenge the cancellation and pressed only the ground of illegality in cancelling L1 certificate with retrospective effect. Probably for the reason that ADC allowed their appeals, the petitioner did not challenge the order of the ADC before the STAT on other grounds. Therefore, our consideration is and ought to be restricted to the validity of the revisional order as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year or within thirty days from the date of commencement of the business if he commences the business during the course of the year, as the case may be: Provided that the assessing authority having jurisdiction may on sufficient cause and for reasons to be recorded in writing condone the delay in respect of an application received after expiry of thirty days from commencement of the year or after the expiry of thirty days from the date of commencement of business as the case may be. However, the delay condoned shall not exceed sixty days and delay shall be condoned within a period of ninety days from the date of commencement of such year or the business, as the case may be. (2)(i) The assessing authority concerned, after conducting such verification as may be necessary permit such dealer, subject to the condition specified in sub-rule (1), to pay in lieu of the amount of tax payable by him during the year, in respect of which such permission is granted, an amount by way of composition as provided in section 5G. (ii) Such permission for composition shall be granted within thirty days from the date of receipt of the application during the year for which the composition is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the provisions of the Act or the Rules. Be that as it is, the benefit by way of composition scheme is not available to all dealers who execute works contracts. The Government is empowered under section 5G(2) of the Act to notify the category of the works contracts for which composition scheme does not apply. In exercise of the powers conferred under section 5G(2), the Government issued notification vide G.O. Ms. No. 787, Revenue (CTII), dated September 21, 1996 to the effect that the dealers who undertake the works contracts named therein shall not be eligible to pay the tax by way of composition under section 5G of the Act. The said notification (as published in A.P. Gazette Part-I Extra-Ord. dated September 28, 1996) reads as under: Notification G.O. Ms. No. 787, Rev. (CT-II) Department, dated September 21, 1996 In exercise of the powers conferred by sub-section (2) of section 5G of the Andhra Pradesh General Sales Tax Act, 1957 (Act No. VI of 1957), the Governor of Andhra Pradesh hereby directs that any dealer who undertakes the following categories of works contracts shall not be eligible to elect to pay tax by way of composition as provided under sub-section (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remission of excise duty on specified intermediate goods if they captively consumed for the manufacture of final products. The plea of the Central Excise Department was that the benefit of exemption notification would be available only to the manufacturers who strictly comply with the procedures prescribed under Chapter X of the said Act. It was also contended that substantial compliance with the procedure would not be sufficient to claim duty exemption and that there ought to actual compliance in respect of the substance of the statute. The Supreme Court while reiterating the principle of strict construction of taxing statutes observed (page 381 in 6 GSTR): The law is well-settled that a person who claims exemption or concession has to establish that he is entitled to that exemption or concession. A provision providing for an exemption, concession or exception, as the case may be, has to be construed strictly with certain exceptions depending upon the settings on which the provision has been placed in the statute and the object and purpose to be achieved. If exemption is available on complying with certain conditions, the conditions have to be complied with. The mandatory req ..... X X X X Extracts X X X X X X X X Extracts X X X X
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