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2015 (9) TMI 359 - ANDHRA PRADESH HIGH COURT

2015 (9) TMI 359 - ANDHRA PRADESH HIGH COURT - [2015] 85 VST 84 (T&AP) - Classification of Fire Bricks Entry 32, schedule I and Schedule VII Assessing authority taxed sale of fire bricks as goods falling under entries 32 of 1st schedule Deputy Commissioner revised order of authority treating them as unclassified goods / general goods falling under Schedule VII Tribunal vide impugned order set aside order of commissioner and classified goods under entry 32 Held that:- usage of these ref .....

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n-dried bricks and fire burnt bricks are of two categories, in absence of specific entry being there generic and natural meaning had to be given to entry and same would have to be taxed as falling in same entry Thus, Revision dismissed Decided against revenue. - T.R.C. No. 73 of 2002 - Dated:- 30-6-2015 - G Chandraiah And Challa Kodanda Ram, JJ. For the Appellant : Sri Anil Kumar Learned Special Government Pleader for Telangana For the Respondent : Sri M.V.J. Kumar ORDER (Per GC,J) This revi .....

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the second question being general in nature first question is one which is required to be considered. Assessee is a manufacturer of refractory bricks. It is the case of the petitioner as well as the authorities that the bricks that are being manufactured by the petitioner are of special and different category of bricks from that of the bricks which are used in the construction industry. Bricks manufactured by the petitioner have a specific purpose of utilizing the same in heat treatment furnaces .....

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s / general goods falling under Schedule VII. It may be noted that basic rate of tax under entry 32 is 5%, whereas the same is 6% for the goods falling under Schedule VII. The assessee filed appeal before the Tribunal and the Tribunal accepted the contention of the dealer that the goods would be classifiable under Entry 32 of 1st Schedule and the Tribunal had dealt with the matter stating that According to the Concise Oxford Dictionary, the Brick means a smell, use rectangular, block of fired or .....

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t Tanks, Steam Boilers etc., Though in ancient times bricks for the purpose of construction used to be made of clay and sand, the modern technology necessitated the use of other materials like concrete etc., in making bricks for the purpose of construction. But, whatever may be the material used and irrespective of the special design, the commodity remains bricks for the purpose of Entry 32 of the 1st Schedule if it is made for the purpose of construction and is used in the construction of struc .....

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Co-Operative Society Limited, Tadikalpudi Vs. The State of A.P. reported in (1993) 16 APSTJ 115. The Honble Supreme Court also considered the sun-dried bricks as nothing but bricks Though they are different from over-baked bricks and carry lesser prices and having less strength than baked bricks. Thus, end user test is the predominant test to be applied in the case of fire bricks are considering whether they fall under Entry 32 of the 1st Schedule and fire bricks fully satisfy this test. The fi .....

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ed order. For these reasons, we hold that the impugned order is liable to be set aside. In the result, the T.A. is allowed settingaside the impugned order of revision made by the Deputy Commissioner. 4) The Tribunal also took note of the fact that on earlier occasion in the case of Navodaya Ceramics & Pottery Manufacturing Industries Co-operative Society Limited, Tadikalapudi Vs. The State of A.P. 16 APSTJ 115. The Tribunal had held that the bricks would fall under Entry 32 of the 1st Schedu .....

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order of the Supreme Court wherein Supreme Court taken note of the difference in price of the sun-dried bricks vis-avis fire burnt bricks, thereby theSupreme Court recognizing the fact that both bricks are distinct category. In that view of the matter drawing an analogy learned Special Government Pleader for Taxes (Telangana) submits that the refractory bricks could not be said to be the bricks falling under the Entry 32 as the other items mentioned in the Entry 32 are predominantly used in the .....

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erent nature there being no specific classification in the Entry 32 and in the face of the finding of the Tribunal that these bricks are also can be used for the purpose of construction as the bricks manufactured by the dealer would squarely fall under the Entry 32 and they cannot be brought under unclassified goods under Schedule VII. He also would submit that the order of the Tribunal taking similar view on earlier occasion in Navodaya Ceramics case (Supra) has become final as there was no app .....

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ies we are in agreement with the learned Special Government Pleader for Taxes (Telangana), Sri Anila Kumar, so far as the aspect that there are two distinct categories of bricks; (1) the bricks which are used in the construction industry and others (2) which are specifically used for industrial purpose. However, it is also cannot be ruled out the usage of these refractory bricks in the regular construction work as well, especially considering the fact of their quality of heat resistance. Further .....

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State Government by notification to direct that in respect of named goods, tax under Section 15 of the Act may be levied at the first stage of sale thereof and on the issue of such notification, tax on such goods shall be levied accordingly. Brick under the notification is taxed at the first point of sale.The dealer claimed deduction on the basis of the notification by maintaining that he had purchased the bricks from the manufacturer and at that point had paid the tax. Thus a second set of tax .....

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