DIAMOND DOT Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed against the proceedings of the Appellate Deputy Commissioner (CT)., Punjagutta Division, Hyderabad in Appeal No. PV/35/2007 -08, dated 27 -02 -2008. The appellant M/s. Diamond Dot, Hyderabad registered under A.P. VAT Act, 2005 and on the rolls of Commercial Tax Officer, Punjagutta Circle, (also called as assessing authority) Hyderabad. The tax for the period June, 2005 to March, 2007 was assessed to tax @ 12.5% by the assessing authority) on the ground that the assessee purchased negative film roll from local VAT dealers and engaged in sale of negative film roll duly drawing the designs by using chemicals. The assessee paid tax on the output tax turnover of it @ 4% instead of 12.5%. The assessing authority observed that the sale of negative with value addition (drawing the designs) to the customers does not fall under Entry 47 of the Fourth Schedule to the APVAT Act, 2005 during the existing period and assessed to tax @ 12.5%. Against this order, the appellant filed an appeal before the Appellate Deputy Commissioner (CT) who in the order dated 27 -02 -2008 dismissed the appeal. Against this order the assessee filed appeal before the Tribunal contending in the grounds of appeal as follows :

(2.) AT the time of hearing, the learned Counsel for the appellant reiterated the grounds of appeal and further contended that the appellant purchased negative film and after processing the printed matter or design or drawings from the computer, it transfers such matter on to the Red Light Sensitive Graphic Art Film by using chemicals etc. By using this film any number of copies of printed material, whether be it text, design or drawing can be obtained. Since the art film contain certain matter, it is to be treated as goods falling under Entry 47 of the Fourth Schedule to the AP VAT Act, 2005 during the tax period June, 2005 to March, 2007. On the other hand, the learned State Representative contended that Entry 47 of Fourth Schedule during the relevant or disputed period falls within the ambit of printed material like diary, calendar etc. The printed material items mentioned in the said entry like diary, calendar material printed can always be read or seen. But, it is not the case that the appellant material Red Light Sensitive Graphic Art Film. The word 'etc.,' needs to be construed as applicable such of the printed material like booklets, broachers etc., which contain certain text. Therefore, the contention of the Authorized Representative deserves no consideration in treating the goods falling under Entry 47 of the Fourth Schedule of the AP VAT Act, 2005.

(3.) THE point for consideration is -