RIKHI INDUSTRIES Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed against the revisional orders of the Dy. Commissioner (CT), Secunderabad Division in Proceedings No. R1/690/95, dated 2.6.1995. Following are the facts leading to filing of this appeal.

(2.) M /s. Rikhi Industries here -in -after referred to as appellants are registered dealers and are manufacturers and sales of Biscuits. The appellant was finally assessed to sales tax for the assessment year 1992 -93 under APGST. On verification of the assessment orders, the Dy. Commissioner (CT) stated that he noticed that assessing authority committed an error in levying tax on sales of broken biscuits and raw material of Rs. 5,39,500/ - at 1% + 1 1/2% + S.C. treating it as wheat and its products. The Dy. Commissioner (CT) here -in -after referred to as revisional authority, was of the opinion that broken biscuits cannot be considered as wheat and its products and therefore took up a revision under Section 20(1) of APGST Act, and issued show cause notice to the appellant treating broken biscuits as unclassified item and proposed a tax at the rate of 6% + Addl. tax + sur -charge.

(3.) AFTER examination of the objections raised by the appellant, he rejected the appellants contention and imposed the tax as proposed by him in his show cause notice and revised the orders of the assessing authority.