SHA GANESHMAL BABULAL Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THESE two appeals have been filed by M/s. Sha Ganeshmal Babulal, Secunderabad, against the orders of the Appellate Deputy Commissioner (CT), Secunderabad Division, Hyderabad in appeals filed against the assessment orders of the Deputy Commercial Tax Officer, General Bazar Circle, Secunderabad. The details are as follows:

(2.) IT is to be noted that the assessing authority has not rejected the turnovers recorded in the books of account. The assessing authority as also the appellate authority had no material before them to show that the appellant has earned a profit of 15 per cent. In the absence of rejection of books of account the authorities should have adopted the profit as per the books of account.

(3.) THE turnover of Rs. 1,15,273.00 relating to agarbathi was assessed to tax as "perfumes" under entry 36 of the First Schedule to the APGST Act. In the case of G. Radha Krishna Murthy and Company and Others Vs. The Commercial Tax Officer -IVB, Vijayawada and others : (1997) 24 APSTJ 187, the Supreme Court has held that neither in common parlance nor by the dictionary meaning nor having regard to the context of item 36 of the First Schedule of APGST Act can it be said that "perfumes" would include agarbathis for the purpose of imposition of sales tax and directed the authorities not to tax agarbathis as falling under item 36 of the First Schedule to the APGST Act. In view of this, agarbathis should be treated as general goods during the relevant assessment year.