SRINIVASA LITHOGRAPHICS Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) IN these two appeals, the appellant is M/s. Srinivasa Lithographies, Red Hills, Hyderabad. These appeals have been filed against the revisional orders of Deputy Commissioner (CT), Abids Division, Hyderabad passed in R.R. No. 10/2007 -08, dated 7 -2 -2008 & RR No. 104/2006 -07, dated 6 -2 -2008; revising the orders passed by the Commercial Tax Officer, Agapura, Hyderabad for the assessment years 2001 -02 & 2002 -03 respectively. The appellants are assessees on the rolls of Commercial Tax Officer, Agapura. They deal in printing of books and periodicals. The assessing authority passed the final assessment order for the year 2001 -02 & 2002 -03 as indicated below:

(2.) ON 6.2.2008 and 7.2.2008, the Deputy Commissioner (CT), Abids Division, Hyderabad after scrutinizing the assessment files, having observed that the appellant made only sales after purchasing paper, ink and other raw -material and having found that there is no evidence of execution of works contract, issued revision show cause notices dated 20th March, 2007 and 21st April, 2007 respectively for the two assessment years under dispute, proposing to revise the assessment orders, treating them as sales calling for the objections of the assessee. The assessee preferred objections stating that they are printers of labels, cartons, catch covers, inserts etc. made as per the specific requirements/orders of customers; that for executing the printing works, they purchase paper, paper -board, ink, consumable etc. They print the required items by utilizing the paper, ink, consumables etc. and that the nature of the transaction is purely works contract, as the material printed is useful to the customer who placed the orders, that they cannot sell the goods in open market to others.

(3.) A direction has been given to the Commercial Tax Officer, Agapura to give effect to the revision proceedings. Consequently, the Commercial Tax Officer, Agapura Circle, Hyderabad passed revised assessment orders dated 15 -2 -2008 by issuing Form B -3 notice demanding the tax as shown below: