LIMRA DOCTOR FEEDS Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THE appellant has appealed against the revisional order of the Additional Commissioner (CT) (Legal), Hyderabad, dated 26.06.2003 in CCT's. Ref.L.III(3)/1701/2002. The appellants are second sellers of poultry feed, which they purchased from M/s. Hindustan Lever Limited, who are manufacturers of the same. They claimed concessional rate of tax under G.O.Ms. No. 1055, Rev. (CT.II) Department, dated 17.10.94. The same was sought to be denied on the grounds that G.O.Ms. No. 1055, has granted concessional rate of tax only to poultry feed which is manufactured and sold by the manufacturers out of ingredients which are either subjected to tax or exempt from tax under the APGST Act, 1957 and sold in the State. According to the revisional authority a trader who is not the manufacturer of poultry feed has no shelter under the G.O. Therefore, the appellant being trader of poultry feed was not entitled to exemption from payment of turnover tax. The revisional authority has relied on the decision in the case of M/s. Hotel Balaji Vs. State of Andhra Pradesh.

(2.) THE learned State Representative has supported the orders of the revisional authority and has stated that turnover tax exemption has been provided only from 01.01.2000 by virtue of G.O.Ms. No. 911, Revenue (CT.II), dated 31.12.99, prior to this date turnover tax was in force and therefore the appellants were not entitled to concessions under G.O.Ms. No. 1055 as they are not manufacturers but only traders of poultry feed.

(3.) HAVING heard both sides, we are of the opinion that Sec. 5A which relates to levy of tax on turnover provides for exemption from turnover tax to the appellant. Section 5A of the APGST Act, 1957 reads as follows: