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TMI Blog2014 (8) TMI 1197X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption order passed by the Government in G.O.Ms. No.1772 (Revenue) dated 25-09-1958. They were assessed to tax for the assessment year 1992-93, under the Andhra Pradesh General Sales Tax Act, 1957 (for brevity, the "Act"), by the Commercial Tax Officer who rejected their claim for exemption, and brought to tax the turnover relating to sale of BOPP tapes and PVS tapes. Aggrieved thereby, the respondent herein carried the matter in appeal and, on the said appeal being dismissed by the Appellate Deputy Commissioner (CT), Hyderabad Rural Division, they preferred an appeal to the Sales Tax Appellate Tribunal contending that, notwithstanding the introduction of Entry 187 and 191 to the First Schedule with effect from 15-06-1987 and 15-02-1989 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said entry; so long as the general exemption from tax, of tapes of all kinds, in G.O.Ms. No.1772 (Revenue) dated 25-09-1958, issued under Section 9 (1) of the Act, continued to be in force, it would prevail over Entry 191 of the First Schedule to the Act. The power to grant exemption from tax is referable to Section 9 of the Act. Section 9 empowers the State Government to notify exemptions from tax or interest and, under sub-Section (1) thereof, the State Government may, by notification in the Andhra Pradesh Gazette, make an exemption, in respect of any tax payable under the Act, on the sale or purchase of any specified class of goods. G.O.Ms. No.1772 (Revenue) dated 25-09-1958 was issued, in the exercise of the powers conferred under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, woolen fabrics and rayon or artificial silk fabrics as defined in item Nos. 19, 21 and 22, respectively of the first schedule to the Central Excises and Sales Tax Act". The assessee claimed that cotton based tarpaulin was exempted from payment of tax as it fell within the term "cotton fabrics" under Entry 7 of the Third Schedule. The case of the revenue, in relation to cotton based tarpaulin, was that the word "tarpaulin", being the more specific Entry as opposed to "cotton fabrics" which was the more general entry, must be held to fall under the former in the First Schedule; and, as the first schedule was amended to include cotton based tarpaulin and made exigible to tax, the benefit of exemption under the third schedule was no longer a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e exempted from excisability to sales tax under the KGST Act. This legal result would follow irrespective of whatever might have been the presumed intention of the Legislature in amending the First Schedule. The intention of the Legislature has to be gathered from the words used in the statute, and as long as entry 11 in the Third Schedule remains unamended, the legal result of exemption of cotton based tarpaulin from excisability to sales tax to the KGST Act cannot be avoided.......". (Emphasis supplied) As has been held by the Supreme Court, in Reliance Trading Company (1 supra), the power under Section 9 of the Act to exempt certain goods from tax is only in cases where the said goods are exigible to tax for, otherwise, there is no nee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-section (1), the tax under this Act shall be levied:- (a) In the case of the goods mentioned in the First Schedule at the rates and only at the point of the sale specified as applicable thereto effected in the State by the dealer selling them, on his turnover of sales in each year relating to such goods irrespective of the quantum of turnover. (b) In the case of the goods mentioned in the Second Schedule, at the rates and only at the point of the purchase as specified as applicable thereto, effected in the State by the dealers purchasing them, on his turnover of purchase in each year relating to such goods irrespective of the quantum of turnover. (c) In the case of the goods mentioned in the Fifth Schedule, at the rates and at the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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