ARUNODAYA POLYPRINT Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS appeal is preferred by M/s. Arunodaya Polyprint, Vishakapatnam aggrieved by the revision made by the Deputy Commissioner (CT), Vishakapatnam vide order dated 20.1.98 in Rc. No. 1010/97/A -8, revising the assessment made by the Commercial Tax Officer, Vishakapatnam for the year 1994 -95 under APGST Act in Asst. No._____/94 -95, dated 15.7.96. The appellants are registered dealers on the rolls of Commercial Tax Officer, China Waltair, Vishakapatnam and manufacturers of Polypropylene Covers and he sold these poly bags to bakerys and milk food manufacturers for the purpose of packing. The disputed turnover is Rs. 20,89,490/ - relating to the first sales of poly propylene bags by the appellant. The C.T.O., levied tax on this turnover @1% treating them as falling under Entry 188 of the 1st Schedule to APGST Act relating to HDPE/PP Woven Sacks. The Deputy Commissioner revised the assessments enhancing the rate of tax on his turnover to 6% treating them as the goods falling under Entry 187 to 1st Schedule relating to articles of plastic excluding H.D.P.E. Woven sacks. The deputy commissioner proposed revision in exercise of his powers U/s. 20(2) of APGST Act and accordingly issued show cause notice. But, the appellant failed to file any objections though he received the notice. Hence, the Deputy Commissioner confirmed the revision.

(2.) AGGRIEVED by the revision made by the Deputy Commissioner, the appellant preferred this appeal contending that poly propylene bags squarely fall under Item 188 as opined by the assessing authority but not under Item 187 of the 1st Schedule. For taking such a plea, he relied upon the judgment of Sales Tax Appellate Tribunal in the case of M/s. Ajaneya Plastic Industries, Tanuku v. The State of AP (1992) 15 APSTJ 149.

(3.) THE point that arises for consideration is whether the Poly Propolyene Bags sold by the appellant fall under Entry 187 or under Entry 188 of the 1st Schedule to APGST Act.