RENU COLOUR COMPANY Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THE appellant M/s. Renu Colour Company, Hyderabad, filed this appeal challenging the order of the Deputy Commissioner (CT), Secunderabad Division, dated 9.10.1999 by which he has revised the assessment order passed by the assessing authority dated 14.9.1995 for the assessment year 1993 -94 under APGST Act, 1957. The brief facts of the case are as follows: The appellant is a registered dealer under APGST Act, 1957 on the rolls Commercial Tax Officer, Musheerabad Circle, Hyderabad. The appellant is a manufacturer of Paints and Oxide Colours. The assessing authority passed final assessment order for the year 1993 -94 under APGST Act, 1957 and held that the appellant is liable to tax as follows:

(2.) THE revisional authority, holding that Item No. 2, i.e., the turnover of Rs. 3,31,628/ - representing first sales of Dry Colours is liable to tax @ 9.5% and surcharge under Item 45 of the I Schedule to the APGST Act, 1957, issued a notice proposing to revise the assessment u/s. 20(2) of APGST Act, 1957 accordingly. The appellant filed objections vide their letter dated 7.10.99 and contended that the manufactured Oxide Powders fall under VII Schedule i.e., in the category of general goods and not under I Schedule. The revisional authority did not accept the contention of the appellant and came to the conclusion that the red oxide (dry colours) fall under Item 45 of the I Schedule during the year 1993 -94 and exigible to tax as proposed and revised the assessment order accordingly.

(3.) THE learned State Representative relying on the judgment in case of Dogra Colour industries Vs. State of Andhra Pradesh reported in : (1998) 27 APSTJ 36 submitted that prior to insertion of Entry 9 of the VI Schedule to the APGST Act, Red Oxide, Synthetic Oxide and Yellow Oxide were liable to tax as general goods and are not covered by Entry 45 and not eligible for concessional rate of tax @ 4% under G.O. Ms. No. 381, Revenue, dated 9.4.1986. It is her submission that since the goods fall under general category, the assessing authority has rightly held that such goods are exigible to tax @ 6.5% + S.C.