BIO PHARMA CAPSULES Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed against the order of revision passed by the Additional Commissioner (CT)., (Legal)., in Ref.L.III(1)/64/2006, dated 17 -02 -2006 who had revised the ADC's order dated 28 -02 -2002 in Appeal No. S/178/01 -02. The appellant namely M/s. Bio Pharma Capsules, Nallakunta, Hyderabad is registered under the APGST Act, '57 (for short, 'Act') and is on the rolls of Commercial Tax Officer, Vidyanagar Circle. The CTO noticed that the appellant, filed returns for the months of April, 2001 to October, 2001 comprised in the assessment year 2001 -02 wherein the assessee declared the following turnovers:

(2.) ON scrutiny of Form A2, the Commercial Tax Officer found that the Empty Gelatin Capsules sold by the assessee as first sales, were taxed @4% treating the said commodity as falling under Entry 19 of the First Schedule to the APGST Act, '57. After verification of such claim, the CTO found that this product was sold under drug licence since the same is specified in Section 3 of Drugs and Cosmetics Act, 1940. Entry 37 of APGST Act which deals with drugs and medicines makes a reference to Section 3 of Drugs and Medicines Act, 1940. Therefore, he concluded that the meaning given to the word 'Drugs' under the Drugs and Cosmetics Act has to be extended to the word "Drugs and Medicines" in the Entry 37 of First Schedule to the APGST Act, '57. He then taxed the above Net Turnover @ 10% as specified in Entry 37 vide his provisional assessment order dated 05 -12 -2001.

(3.) THE Commercial Tax Officer vide order dated 18 -02 -2003 passed the final assessment order determining the following turnovers.