RAASI CEMENT LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THESE two appeals are filed against the orders of the Appellate Deputy Commissioner (CT), Hyderabad, in Appeal Nos. N/98/94 -95, dated 2.1.1995 and Appeal No. N/99/94 -95, dated 2.1.1995 respectively, partly upholding the orders of the Commercial Tax Officer, Miryalguda in R.C. No. HYR/07/2/5B/7001/89 -90, dated 20.5.1994, and G.I. No. HYR/07/2/53/7001/89 -90, dated 3.10.1994 respectively. The proceedings relate to withdrawal of certain items from the G2 Certificate of Registration for purpose of A.P.G.S.T. and C.S.T. Acts respectively. -The appeals are against withdrawal of eligibility of certain items for concessional rate under Section 5 -B of the A.P.G.S.T. Act and correspondingly under the C.S.T. Act. As a common issue is involved in both the appeals, they are taken up together for disposal by way of a common order. The appellant is a manufacturer of Cement and was originally granted G2 certificate on 26.10.1989 enabling it to avail concessional rate of tax on the purchase of raw -material, component parts, sub -assembly parts, intermediate parts, consumables and packing material which were used in the manufacture of its finished product. By his order dated 20th May, 1994, he excluded from such eligibility, diesel and spares for plant and machinery with retrospective effect. On appeal, the Appellate Deputy Commissioner (CT) upheld the withdrawal of eligibility by exclusion of these impugned items in the registration certificate under Section 5 -B of the A.P.G.S.T. Act, but held that such exclusion can only be done prospectively and not retrospectively from the date of issue of registration. The appellant is therefore aggrieved and before us in the present appeal.

(2.) THE point for consideration is, whether the appellant is eligible for inclusion of certain impugned items like diesel and machinery spares in its G2 Certificate?

(3.) WE have considered appellant's arguments. As far as the purchase of diesel is concerned, we are bound to follow the A.P. High Court's decision in the case of Delta Paper Mills Limited Vs. Oil and Natural Gas Commission and Others (81 STC Page 339), wherein it was held that: