STATE OF ANDHRA PRADESH Vs. CHENNAIAH JANNU

JUDGEMENT

(1.) THIS is a revision under section 22 (1) of the Andhra Pradesh General Sales Tax Act, 1957 (hereinafter referred to as "the Sales Tax Act" ). The respondent carries on business in groundnuts, etc. He was assessed finally for the assessment year 1965-66 under the Sales Tax Act on a gross and net turnovers of Rs. 11,73,556. 74 and Rs. 3,41,233. 85 respectively by the Commercial Tax Officer, Mahaboobnagar, by his order dated 26th December, 1966. The net turnover determined includes a turnover of Rs. 3,23,525. 01 which represents the purchase value of groundnuts sold to non-resident dealers in the course of inter-State trade. The respondent took the matter in appeal before the Assistant Commissioner of Commercial Taxes, Anantapur, disputing the assessment on a turnover of Rs. 3,23,525. 01. The Assistant Commissioner dismissed the appeal. A further appeal was taken to the Sales Tax Appellate Tribunal which, following its earlier common order in T. A. No. 42 of 1968, etc. , dated 23rd September, 1968, allowed the appeal. The Tribunal held that in respect of declared goods, tax could be levied and collected only under the Central Sales Tax Act, 1956, and not under the State Act and any assessment made under the Sales Tax Act is wrong in law. The present revision is against the order of the Tribunal.

(2.) THE question for consideration is whether, in the case of declared goods, no tax can be levied under the Sales Tax Act. To determine this question, it is necessary to consider the provisions of section 15 of the Central Sales Tax Act which reads :

(3.) BY this section, the tax is to be levied at the point of sale or purchase and at the rate mentioned in the Third Schedule. Item 6 of the Third Schedule to the Sales Tax Act in respect of groundnuts fixes the rate at three paise in the rupee and the point at which the tax is to be levied has been shown to be "when purchased by a miller other than a decorticating miller in the State, at the point of purchase by such miller and in all other cases at the point of purchase by the last dealer who buys in the State. " The provisions, therefore, clearly show that the rate does not exceed three per cent. Which is one of the conditions laid down in section 15 of the Central Sales Tax Act and also the tax is not levied at more than one point, the second condition imposed in section 15. Further, a provision has also been made in section 6 that in case the goods are sold in the course of inter-State trade or commerce, the tax so levied shall be refunded to such person, in such manner and subject to such conditions as may be prescribed. Thus, it is seen that section 6 conforms to section 15 of the Central Sales Tax Act and does not go contrary to that section. As already pointed out by us, section 15 does not lay down that the sales tax on declared goods can be collected only under the Central Sales Tax Act and not under the State Act.