HINDUSTAN LEVER LTD. Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed by M/s. Hindustan Lever Limited, Moosapet, Hyderabad against the orders of Appellate Deputy Commissioner (CT), Hyderabad Rural Division, Hyderabad in Appeal No. R/115/1999 -2000, dated 18 -09 -1999 arising out of the final assessment orders passed by Commercial Tax Officer, Hydernagar Circle in Assessment No. - -/1995 -96 (APGST). The assessing authority had assessed the product 'Coconut Oil' manufactured by the appellant for the year 1995 -96 under the entry 36 of First Schedule of the APGST Act, 57 liable to tax at the rate of 20%. On appeal before the Appellate Deputy Commissioner (CT), Hyderabad Rural Division, Hyderabad the contention of the appellant that their product is covered by Entry 128 of First Schedule to the APGST Act upto 15 -8 -1995 and under Entry No. 24 -A thereafter was specifically rejected by the Appellate DC. Hence, the present appeal before this Tribunal.

(2.) THE learned ADC has stated that the assessing authority is of the opinion that their product 'Nihar and Parachute Coconut Oil' are not pure coconut oils but are used as hair oils only and hence they fall under Entry 36 of the first schedule to the APGST Act. He has further stated that the appellants have not produced any evidence to show that their products are pure coconut oils which can be used even as cooking medium. Since the products of the appellants are used as hair oils only they fall under Entry 36. Even the price of these products is higher compared to the products of pure coconut oil. He has also opined that case laws cited by the appellant i.e., the decision of Sales Tax Appellate Tribunal in TA No. 280/97, dated 3 -11 -1997 in the case of M/s. Swastic Oil Products is not applicable to the case on hand. He has further quoted that the contentions of the appellant have no force and accordingly, dismissed the appeal.

(3.) THE Learned Additional SR has supported the orders of the Appellate Authority and stated that since the product in question is sold in small bottles and is meant for being used as hair -oil, the assessing authority and the appellate authority are right in placing it under Entry 36 of the First Schedule of the APGST Act.