MERINO INDUSTRIES LTD. Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS ' is an appeal filed against the order passed by the Appellate Deputy Commissioner (CT)., Punjagutta Division, Hyderabad in Appeal No. CV/6/2010 -11, dated 11 -06 -2012. The appellant is M/s. Merino Industries, Ltd., Seetharam Bagh, Hyderabad registered dealer under AP VAT Act, 2005 with TIN 28070111354 and on the rolls of Commercial Tax Officer, Malakpet Circle, Hyderabad (for short, called as 'assessing authority'). The assessing authority conducted VAT audit and observed the assessee effected sales of Potato flakes (Potato Mash) or Aloo Mash from 1 -9 -2008 to 31 -10 -2009 and paid tax @ 4% on the sales turnover of Rs. 19,61,541/ -. The commodity Potato flakes (Potato Mash) are not specified in the Schedule -I, II, III, IV and VI of the AP VAT Act, 2005 and it pertains to Fifth Schedule liable to tax @ 12.5% but paid tax @ 4% and liable to pay difference tax @ 8.5%. The difference of tax payable worked out to Rs. 1,66,731/ -. In addition to it, the assessing authority also observed that the appellant also executed the work of installation of Plywood plaques/Partition rooms, cubicles and received installation charges from 1 -9 -2008 to 31 -10 -2009 and this attracts Works Contract liable to tax @ 12.5% under the AP VAT Act, 2005 on a turnover of Rs. 2,55,207/ -. Accordingly, the assessing authority issued a notice dated 30 -11 -2009 proposing to assess and the notice was served on 11 -01 -2010 (Form VAT 305A).

(2.) AT the time of hearing, the learned Counsel for the appellant reiterated the grounds of appeal and filed a list of cases relying in support of its contention.

(3.) HEARD both sides.