UNIQUE BODY BUILDERS Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed against the orders of Deputy Commissioner (CT), Hyderabad Rural Division, Hyderabad in R.R. No. 38/1998 -99, dated 24 -8 -2000 revising the orders of Commercial Tax Officer, Jeedimetla in assessment No. - -/96 -97, dated 28 -2 -1998. The appellant M/s. Unique Body Builders, IDA, Jeedimetla are registered dealers on rolls of Commercial Tax Officer, Jeedimetla. For the assessment year 1996 -97, the assessee was finally assessed by the Commercial Tax Officer, Jeedimetla determining the following turnovers:

(2.) THE Deputy Commissioner (CT), Hyderabad Rural Division, Hyderabad, whose order was under the present appeal, to examine the propriety, correctness and legality of the turnovers assessed, perused the assessment orders and found that the Assessing Authority levied lesser rate of tax 4% on the turnover of Rs. 91,72,907/ - representing the fabrication charges received from Andhra Pradesh State Road Transport Corporation (APSRTC) built on bus bodies from 1 -8 -1996 to 31 -3 -1997 instead of levying the tax @ 8%. It is observed that the rate of tax on motor vehicles including bodies built on the chassis of motor vehicles etc., was increased to 8% from the earlier rate of tax of 4% with effect from 1 -8 -1996 in G.O. Ms. No. 635, Revenue (CT -II) Department, dated 31 -7 -1996. It is further observed on the scrutiny that the assessee fabricated bus body building and supplied to APSRTC and received charges of Rs. 1,34,19,023/ - during the year 1996 -97 and the same was assessed to tax at 4% and out of the above turnover, a turnover of Rs. 42,46,046/ - relates to the period up to 31 -3 -1996 and the remaining turnover of Rs. 91,72,987/ - relates to the period subsequent to August, 1996. Hence, it is observed that tax should be levied at 8% on Rs. 91,72,987/ - instead of 4%. Hence, a pre -revision show cause notice was issued to the assessee with a request to submit his objections within 15 days. The assessee in their reply dated 23 -3 -1999 objected for the proposed revision stating that under the GO, if the parties purchased chassis after paying 8% tax, the tax to be paid by them is 4% and not 8%. It is further stated by the appellant assessee that they are receiving charges from APSRTC and after fabrication, they are returning the same and as the APSRTC paid taxes on the chassis, the tax leviable is only 4%. A request was made to drop the proposed revision. The Revisional Authority at the time of revision confirmed the proposed revision since the assessee failed to produce evidence showing that tax suffered chassis was received from APSRTC.

(3.) NOW the point for consideration is whether imposition of tax at 8% on the amount of Rs. 91,72,987/ - by the Revisional Authority is in accordance with law?