INFRES METHODEX LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed against the order passed by the Commercial Tax Officer, Ashok Nagar Circle, Hyderabad in order dated 29 -11 -2010 levied VAT Tax on Service Charges collected, Education Cess collected and Secondary & Higher Education Cess collected relying on Advance Ruling No. PMT/P & L/AR. Com/108/2007, dated 02 -3 -2009. The appellant is M/s. INFRES Methodex Limited, S.D. Road, Secunderabad registered under AP VAT Act, 2005 and on the rolls of Commercial Tax Officer, General Bazar Circle, Secunderabad (for short, called as 'assessing authority'). The assessee dealing in office automation products like Photo Copying Machines, Currency Counting Machines, Document Shredders, Copier/Printer, Digital Multifunction Machines etc. The Commercial Tax Officer, Ashok Nagar Circle conducted Audit, verified the books of accounts and observed the appellant opted for composition Scheme under works contract towards the Annual Maintenance Contract (in short, 'AMC'), submitted Form 250 for each work and also paid differential tax on the goods as per Section 4(7)(e) of the AP VAT Act, 2005. He observed from the invoices, the assessee not included the Service Tax, Education Cess and S & H Education Cess collected in the taxable turnover to arrive the VAT tax due. The Commercial Tax Officer, Agapura Circle relying on the sub -section 29 to Section 2 of AP VAT Act, 2005 and Advance Ruling Authority order in M/s. Das Engineering Co., in A.R. Com/108 2007, dated 2 -3 -2009 wherein it was held that total consideration received by the applicant who opened for composition is liable to pay tax on the total amount of consideration received or receivable without any deduction whatsoever, arrived the tax due on service charges collection. Education Cess collection and S & H Education Cess collected for the tax period 2007 -08, 2008 -09, 2009 -10 and 2010 -11 (up to July, 2010) and proposed to tax due Rs. 34,285/ -, Rs. 69,342/ -, Rs. 66,474/ - and Rs. 30,954/ - respectively, issued show cause notice and the dealer filed reply dated 10 -11 -2010, examined the objections filed and considered and arrived the net tax due after deducting the tax paid on AMC work for the tax period from August, 2007 to July, 2010 and arrived the tax due to a tune of Rs. 1,63,192/ - and passed order dated 29 -11 -2010.

(2.) AT the time of hearing, the learned Counsel for the appellant reiterated the grounds of appeal and strongly objected the levy of tax on Service Tax collection, Education Cess collection and S & H Education Cess collection and further relied on Sales Tax Appellate Tribunal decision in Indian Commerce and Industry Company Pvt. Ltd., Secunderabad Vs. State of A.P. ., (2012) 55 AP STJ 89 wherein it was held that tax on service, education cess are not liable to levy VAT tax on it.

(3.) HEARD both sides.