LANCO INDUSTRIES LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal preferred against the revision proceedings of Deputy Commissioner (CT), Chittoor in G.I. No. 4681/99/2000, dt. 29.03.2005. The appellants M/s. Lanco Industries are manufacturers of Pig iron. The assessing authority has assessed sale of Molten metal to the tune of Rs. 1,59,86,080/ - treating the commodity as Pig iron falling under Entry 2 of III Schedule. The Deputy Commissioner (CT)., Chittoor has examined the assessment records of the appellants for the year 1999 -2000 and issued show cause notice to the appellants treating the commodity Molten Metal as unclassified goods. Having received the show cause notice, the appellants have filed objections in writing and personal hearing was also granted. Having examined the objections carefully, the Deputy Commissioner (CT)., Chittoor has passed the impugned order. Aggrieved with the order of Deputy Commissioner (CT)., Chittoor, the appellants have come up before this Tribunal.

(2.) THE learned counsel on behalf of the appellants has contended that Molten Metal is Pig Iron and it is not recognized as a different commodity other than Pig Iron. As per specification of BIS, Molten Metal is one form of Pig iron. Further he has contended that the Commissioner of Commercial Taxes, Hyderabad in Ref. No. A1(1) 889/2003, Dt. 3.7.2003 clarified that Pig iron whether Molten or solidified is Pig iron only. The clarification given by the Commissioner is binding on the Deputy Commissioner and the revision authority cannot take a different opinion. The learned Counsel on behalf of the appellants has further contended that the revision order has been passed which is not prejudicial to the interest of revenue. The appellants are under the scheme of deferment of tax and beneficial interpretation has to be extended to the appellants so as to advance the growth of the industry and hence the revision order passed by the Deputy Commissioner (CT)., is bad in law. The learned Counsel on behalf of the appellants have relied on the following judicial decisions in support of his contentions.

(3.) HEARD both sides.