JINDAL STRIPS LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed against the orders of Deputy Commissioner (CT) Vizianagaram Division in GI No. 3348/96 -97(CST), dated 13.8.2001 revising the final assessment orders of Commercial Tax Officer, M.G. Road, East -Circle, Vizianagaram in his Asst. No. 3348/96 -97(CST), dated 16.3.2000. The disputed turnover is Rs. 31,80,19,916/ -. The appellants M/s. Jindal Strips Ltd., (previously known as M/s. Jindal Ferro Alloys Limited), Kothavalasa are dealers and manufacturers of Ferro chrome and are assessees on the rolls of CTO, MG Road (East), Vizianagaram. For the year 1996 -97, their assessment was completed by the assessing authority. The Deputy Commissioner(CT), Vizianagaram Division on examination of the assessment record noticed that the assessing authority has erroneously exempted huge turnover accepting the principles of amalgamation of Jindal Ferro Alloys Ltd. with M/s. Jindal Strips Ltd. for the year 1996 -97 and revised the assessment. The present appeal before us is against those orders.

(2.) THE learned Authorised Representatives for the appellants, in their grounds of appeal stated the facts as follows:

(3.) THE main point on which the revisional authority relied on the view taken by the appellants that in order to safeguard the interests of the Company in the event of the non -approval of the amalgamation scheme by the respective High Courts, the assessee as well as the transferee of goods treated the transactions between them from 1.4.1995 upto the date of final amalgamation, as inter -state sales and the assessee issued sales bills and collected and paid Central sales tax. The revisional authority failed to consider the fact that after the approval of the scheme by the respective High Courts, M/s. Jindal Strips Ltd. & M/s. Jindal Ferro Alloys Ltd. were merged together w.e.f. 1.4.1995 and therefore, there cannot be a sale to self. The assessing authority had rightly allowed the transactions in question to be branch transfer and had allowed refund of the amount of central sales tax so paid, which should not have been disturbed by the learned DC(CT), Vizianagaram, invoking the provisions under Section 20 of the APGST Act. On account of amalgamation, the transactions in question, being branch transfers, no tax is leviable under CST Act. As the Revisional order is based on erroneous, unjustified illegal considerations and in view of the decision of Apex Court reported earlier, they finally prayed this Tribunal to set aside the order of revision. They also produced an assessment order passed by the Dy. Excise Taxation Commissioner of Hissar treating both the Companies as one and the same after their amalgamation which came into force from 1.4.1995.