9911796707
TMI Blog2012 (2) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... ch of five other appeals; insofar as T.A. No. 492 of 1997 is concerned, it was preferred by the revision petitioner against the order of the Deputy Commissioner (Commercial Taxes), Chittoor, revising the order of assessment. The revision petitioner is a dealer, which purchased groundnuts from the Andhra Pradesh Oil Seeds Growers Federation Limited, Hyderabad (for short, "the Federation") and on the strength of the certificates issued by the Federation, the assessing authority granted exemption on the corresponding purchase turnover of groundnuts. It requires to be noticed that in G.O. Ms. No. 621, Revenue, dated June 28, 1989, the State exercising powers under section 9(1) of the Andhra Pradesh General Sales Tax Act, 1957 (for short, "1957 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revising authority must examine whether the conditions specified under section 6A of the 1957 Act are satisfied, i.e., whether the goods purchased from the Federation have been consumed in the manufacture of other goods or consumed otherwise, in other words whether the dealer had converted such groundnuts into oil or sold the groundnuts as such. If the groundnuts as such were sold by the dealer, then he would not be liable under section 6A of the 1957 Act, as the case would fall under the second limb of the provisions in entry 6 of the Schedule III, i.e., purchaser as a last dealer. Despite noting this contention of the petitioner, the Tribunal did not deal with the same but proceeded on the ground that since the bye-laws of the Federation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he last dealer who buys in the State. The rate of tax is specified to be four per cent." It is textually clear and indisputable position as well, that in view of entry 6 of Schedule III, it is a Federation, which is liable to tax since it is an oilmiller, which has purchased the specified groundnuts; and the liability arises at the point of levy specified. The second facet of entry 6 dealing with the point of levy, namely, the liability of the last dealer arises and at the point of purchase only when the purchase is not by an oil-miller. If the liability of the Federation is exempt by virtue of the notification in G.O. Ms. No. 621, dated June 28, 1989, the liability would not in the context of entry 6 shift to the petitioner as the last de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utside the State except as a direct result of sale or purchase in the course of inter-State trade or commerce. The petitioner was treated as liable under section 6A of the 1957 Act by the revisional authority vide the order dated March 3, 1997, but without any mention or discussion of his liability under section 6A of the 1957 Act, in the show-cause notice dated September 20, 1994. It is axiomatic and established by the precedent vide State of Andhra Pradesh v. Loharu Steel Industries Limited [1996] 96 STC 369 (AP) that a revisional authority cannot engraft a liability without notice to the assessee/dealer. The order of the revisional authority, dated March 3, 1997, determining the liability of the revision petitioner under section 6A of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as confined to the turnover relating to milling by the Federation, then the burden is upon the Federation as an assessee (that the Federation is also a dealer under the provisions of the 1957 Act is not in dispute) to establish that they were in fact in the business of trading as well and had purchased part of the turnover for sale. On the aforesaid analysis, the impugned order of the Tribunal cannot be sustained and is accordingly set aside. The order of the revisional authority, dated March 3, 1997 cannot also be sustained since that order proceeded to determine the revision petitioner's liability to tax under the provisions of section 6A of the 1957 Act without affording the petitioner an opportunity on this aspect of the matter. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
