BHARATH DYNAMICS LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed by M/s. Bharath Dynamics Ltd., Hyderabad, against the order dated 21.2.1998 in Proceedings No. PR/23/97 of the Deputy Commissioner (CT), Charminar Division, Hyderabad, modifying the assessment order dated 28.2.1994 in Asst. No. 32532/89 -90/CST by the Commercial Tax Officer, Malakpet Circle, Hyderabad. The disputed turnover involved in the present appeal is Rs. 5,80,864. For the assessment year 1989 -90 of the appellant under CST Act, 1956, the assessing authority assessed and levied total tax of Rs. 78,169/ -. The assessee produced two D' Forms issued by Explosives Research and Development Laboratory, Sutarwadi, Pune -21. Concessional rate of tax was levied by the assessing authority on the basis of the two 'D' Forms declarations issued by the above Laboratory. The turnover covered by the above two 'D' forms is Rs. 5,80,864 -00. The Deputy Commissioner (CT) issued a pre -revision notice dated 3.8.1997 on the ground that the purchaser is a Public Sector organisation and it is not a Government Department and therefore the laboratory concerned is not competent to issue certificates in Form 'D'. Later, observing that the assessee neither filed the written objections nor requested to grant some more time to file their objections, construing that the assessee is not having any objections confirmed pre -revision notice issued by him by his order dated 21.2.1998. Aggrieved by the above orders of the Deputy Commissioner (CT), the appellant preferred the present appeal.

(2.) THE point for determination in the appeal is whether the revision order dated 21.2.1998 of the Deputy Commissioner (CT) Charminar Division is not liable to be set -aside.

(3.) ACCORDING to the Deputy Commissioner (CT), Explosives Research and Development Laboratory, Pune, which issued two 'D' Forms, is not a Department of the Government of India and on the other hand it is a public sector organisation. In the Form VD certificates it is clearly mentioned that Research and Development Organisation in the Ministry of Defence, Government of India is the issuing department. The Deputy Commissioner (CT) did not gather any material in support of his conclusion that the laboratory concerned is a public sector organisation and not a department of Government of India. There is no basis whatsoever available on record which prompted the Deputy Commissioner (CT) concerned to arrive at such a conclusion. The Deputy Commissioner (CT) in his proceedings any where did not mention that he made any enquiries whatsoever and got satisfied himself that the said laboratory is not a department of Government of India and on the other hand it is a public sector organisation. As there is no basis whatsoever for the Deputy Commissioner (CT) to arrive at such a conclusion, his order being baseless and not supported by any material is liable to be set -aside.