GOPALAKRISHNA TRADING COMPANY Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed by M/s. Gopalakrishna Trading Company, Narsaraopet, against the orders of the Appellate Deputy Commissioner (CT), Guntur, dated 30.3.1996 in Appeal No. 101/95 -96 dismissing the appeal filed against the assessment orders of the Commercial Tax Officer, Narasaraopet in the assessment order No. 16337/94 -95, dated 22.12.1995. The appellant disputed the rebate of tax of Rs. 3,451.00. The appellant is a miller and dealer in paddy and rice etc. In the course of its business the appellant purchased gunnies, got them filled with rice, broken rice, and bran etc., and sold the rice and broken rice so filled in gunnies. The value of the gunnies involved in the sale of rice etc., was assessed to tax at the rates applicable to the contents. While granting the reduction of tax on the purchase of paddy from the tax on sale value of rice the assessing authority has not taken the value of the gunnies into consideration. Since the tax levied on purchase of paddy was higher than the tax leviable on the sale of rice (excluding the value of gunnies) the reduction of tax was restricted to the tax leviable on the sale of rice (excluding the value of gunnies). On appeal the appellate authority dismissed the appeal on the ground that gunnies were taxed under Sec. 6 -C of the APGST Act along with the content and given set -off of tax under G.O. Ms. No. 374, Rev. dated 25.4.1987 and the net result was that the tax on gunnies at the earlier transaction was given set -off and hence the claim of reduction of tax on the value of gunnies is untenable. Hence, this appeal.

(2.) THE point for consideration is whether the appellant is entitled to the relief under Explanation III to the Third Schedule in respect of tax levied on gunnies along with rice in addition to the relief under G.O. Ms. No. 374, Revenue dated 25.4.1987.

(3.) AT the time of hearing the authorised representative has cited the following decisions: -