HINDUSTAN ZINC LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THESE three appeals have been filed against the orders of Appellate Dy. Commissioner (CT), Kakinada dismissing the appeals filed against the assessment orders of Commercial Tax Officer, Gajuwaka, Visakhapatnam. The appellant in all these appeals is one and the same. As common issues are involved in all these appeals, they are heard together and are disposed of by this common order. The particulars of the appeals are as follows:

(2.) THE appellant M/s. Hindustan Zinc Limited is a public sector undertaking and are on the Rolls of CTO, Gajuwaka/Chinawaltair. Their assessments for the assessment years 1991 -92; 1992 -93 & 1993 -94 were completed by the assessing authority. Aggrieved by the orders, they filed appeals before this Tribunal, the appellant disputed the following four items:

(3.) THE appellant argued that Visaka Municipal Corporation supplied water to various industrial undertakings on regular charitable basis. After the enlarged definition of "dealer", which came into force with effect from 1.7.85 ' the activity of Vizag Municipal Corporation fall under the definition of dealer. From this angle, the assessing authority would have collected sales tax from Visaka Municipal Corporation but instead of that he imposed Section 6 -A tax on the appellant. The real liability is on the shoulders of Vizag Municipality. In this case, no attempt was made by the assessing authority to levy tax on Vizag Municipal Corporation and instead levied tax on the appellant, which is violation of natural justice and hence they claimed that necessary relief may be given accordingly. He also relied on the Judgment of Sales Tax Appellate Tribunal rendered in TA No. 451/87 dated 28.11.1988 in the case of Laxmi Starch Ltd. v. The State of Andhra Pradesh. Wherein it was held that the levy of tax on the value of water supplied cannot be subject matter of tax under Section 6 -A of the APGST Act.