KESHAVA TRADERS Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THESE 42 appeals have been filed by different appellants against the orders passed by the lower authorities. As common issues are involved in these appeals, they are heard together and disposed off by this common order. The particulars of these appeals are furnished hereunder:

(2.) ALL the appellants in theses appeals are rice millers under the provisions of Andhra Pradesh General Sales Tax Act, 1957. In respect of some of the appellants, the Commercial Tax Officer has finalized the assessments by exempting the value of gunnies which have been purchased from local registered dealers in the State. The appellants contended before the assessing authority that the gunnies are taxable at fist sale point only, even under Entry 19(iii) of the APGST Act and once it is proved that they were tax suffered earlier, the further sale of gunnies along with rice would not attract tax liability under entry 19(iii) of the First Schedule. The assessing authority accepted the contention of the appellants and did not levy tax at 4% on second sales of gunnies but, however levied tax at 1 % on the value of the gunnies under Section 5(A) of the APGST Act.

(3.) IN response to the show cause notice issued by the Deputy Commissioner, appellants inter -alia contended before the Revisional Authority that the liability of tax on gunnies is on par with the rate of tax leviable on such content. It was also contended that the gunnies would be liable to tax at the point of first sale in the State under Entry 19(iii) of the First Schedule and when once they were already suffered tax at the point of first sale, the mere fact that the gunnies are sold along with the rice, would not make the gunnies liable to further tax under Entry 19(iii) of the First Schedule to the Act. In substance, the contention of the appellants was that under Entry 19(iii) read with Sec. 6 -C of the APGST Act, it is only the rate of tax that is prescribed, but the provisions do not authorise to levy again on tax suffered goods. According to the appellants, Section 6 -C of the APGST Act does not provide for further tax on packing material but only prescribes the rate of tax, if packing material is otherwise taxable.