V.K. ENTERPRISES Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed against the orders passed by the Appellate Deputy Commissioner (CT), Vijayawada in Appeal No. VJA.I/145/96 -97, Dated 13.11.1996 whereby the appeal preferred against the orders passed by the Dy. Commercial Tax Officer, Kothapeta, Vijayawada in Asst. No. 12389/94 -95, Dated 2.9.1996 disputing the levy of tax of Rs. 2,403/ - on a turnover of Rs. 1,09,200/ - was dismissed. The appellant is M/s. V.K. Enterprises, Vijayawada. In this appeal the issue involved is whether Camphor and Patcha Karpuram are one and the same and fall under Entry 122 of the First Schedule to the APGST Act as held by the local authorities or not?

(2.) ON the other hand, the learned State Representative has relied upon the orders passed by the lower authorities.

(3.) POINT No. 1: - -It is to be noted that Camphor was introduced from 1.3.1974 as an Item No. 122. In the decision reported in : (1965) 16 STC 935, Their Lordships of the Calcutta High Court in Sri Om Prakash v. Commissioner of Commercial Taxes and Others, while considering the question about the assessee who purchased camphor in powder form, converted it into Camphor cubes and sold such cubes in the market under different brand names. The Revenue assessed the sales turnover to tax under the West Bengal Sales Tax Act. Whereas the assessee contended that Camphor was not a notified commodity under Sec. (4) of the West Bengal Sales Tax Act, 1954. Under the said Act, the word "drug" as defined in clause (b) in Sec. 3 of Drugs Act was notified as a commodity liable to taxation. According to the definition of the term "drug" in Sec. 3(b) of the Drugs Act, 1940, read with British Pharmaceutical Code, it is beyond dispute that Camphor is a drug. Therefore, their Lordships held that Camphor is a drug and falls within the scope of the West Bengal Sales Tax Act, 1954.