VIEWTECH IMAGING SYSTEMS Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS appeal is preferred against the order of the Deputy Commissioner (CT), Begumpet Division, Hyderabad, dated 6.1.2007 in R.C. No. E3/R/153/2006. The appellant M/s. Viewtech Imaging Systems, S.P. Road, Secunderabad, is on the rolls of Commercial Tax Officer, S.D. Road Circle, Secunderabad. The assessing authority completed the final assessment for the year 1999 -2000 vide his proceedings dated. 19.12.2002.

(2.) THE powers conferred U/s. 20(20) of the APGST Act, 1957, the assessment record was perused by the revisional authority and he found that the final assessment made by the assessing authority was prejudicial to the interests of the revenue. He observed in Form -A2 returns field by the appellant disclosed the sale of Electronic Projectors on which tax was levied @ 3.5% upto December, 1999 instead of 16%, since the rate of tax on the projectors was 16% upto 31.12.1999 under Entry 4 of 1 Schedule and from 1.1.2000 the rate of tax was 12% under Entry 38B of I Schedule. Hence, he issued a pre -revision show cause notice calling for the written objections of the appellant giving 15 days time. The appellant field their objections stating that the above turnover is nothing but sale of Electronic Projectors which are falling under Electronic Items and conform to the definition laid down by the Hon'ble Supreme Court of India in the case of M/s. BPL India Ltd. v. The State of Andhra Pradesh (32 APSTJ 41). After examining the contentions raised by the appellant, the revisional authority rejected the contentions and confirmed the proposal made by him in the revision show cause notice and levied tax at 16% on the turnover of Rs. 18,46,337/ - and directed the assessing authority to give effect to this order immediately.

(3.) AT the time of hearing of the appeal, it has been contended by the learned counsel for the appellant that the LCD Projectors sold by the appellant are appeared in the List of Electronic Goods prepared by the Electronics Commission and in view of the decision rendered by Hon'ble Supreme Court in between State of Andhra Pradesh v. Concap Capacitors : 2007 (217) E.L.T. 481 (S.C.), the Hon'ble Supreme Court has while upholding the order of the Hon'ble A.P. High Court, categorically stated that functional test, operating principle or user test is not applicable when an item is specifically included in the list prepared for classification by Government and the classification in that case has to be made as per list only.