AMRUTANJAN LTD. Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed against the order of Additional Commissioner (CT)., (Legal)., (for short, the 'Revisional Authority') in CCT's Ref.No.L.III(1)/2337/2003 -I, dated 24 -07 -2007 who had set aside the order of Appellate Deputy Commissioner (CT)., Secunderabad, (for short, the 'Appellate Authority') dated 26 -08 -2003 who had allowed the appellant's appeal against the Commercial Tax Officer order (for short, the 'Assessing Authority'), dated 09 -11 -2002. The appellant is engaged in the business of manufacture and sales of ayurrvedic medicines like Amrutanjan Pain Balm and its allied products. The appellant is registered under the APGST Act, '57 and is on the rolls of Commercial Tax Officer, Ashok Nagar Circle, Hyderabad. The Assessing Authority held, the impugned product 'Swas Mint' as a confectionery under Entry 117 of the First Schedule to the APGST Act, '57 as against the claim of the appellant that it is a medicine under Entry 37 of the First Schedule to the APGST Act, '57. The Appellate Authority reversed the findings of the Assessing Authority by placing reliance on the letter of Indian Medicine and Homeopathy Department which certified that this product is an ayurvedic medicine. He also placed reliance on the Hon'ble High Court of Andhra Pradesh decision in the case of Indian Extrusion v. Commissioner of Commercial Taxes reported in : 124 STC 474 wherein the Hon'ble High Court held that in the matter of classification of goods, the classification made by the concerned Department had to be given due weight and consideration. He also took into the fact that the same Assessing Authority in the case of M/s. Swas Health Products Ltd., manufacturers of the impugned product is taxed at 10% on the same product. The Revisional Authority held that Swas Mint falls under the category medicated goods which is excluded from Entry 37 though the same may be manufactured under a drug licence.

(2.) ON appeal to this Tribunal, the appellant has taken the following grounds of appeal:

(3.) ON the other hand, the Id. State Representative supported the order passed by the Revisional Authority.