STATE OF ANDHRA PRADESH Vs. VENKATESWARA TRADING CO

JUDGEMENT

(1.) This batch of tax revision cases and filed by the State of Andhra Pradesh under section 22 of the Andhra Pradesh General Sales Tax Act, 1957 (hereinafter called "the Act") against a common judgment of the Sales Tax Appellate Tribunal dated 18/08/1988, by which it has allowed several appeals filed by the assessees.

(2.) The controversy is about the rate of tax on "ravva" made from rice for the period prior to the amendment of the Act by Amendment Act 18 of 1985. It is common case that such rice has not suffered sales tax but whether paddy from which it was extracted has suffered tax under the Act or not was considered irrelevant by the authorities. The facts in T.R.C. No. 26 of 1990 arising out of the Tribunal Appeal No. 264 of 1985 pertaining to the assessment year 1981-82 are considered as illustrative of the controversy. The assessing authority, viz., the Commercial Tax Officer, has brought to tax such "ravva" under item 144(a) of the First Schedule at 5 per cent. This was confirmed in appeal by the Deputy Commissioner. The Tribunal has taken the view that it is exigible under item 144(b) of the First Schedule at 1 per cent. This decision of the Tribunal is assailed before us.

(3.) Before the Tribunal three points were urged, viz., (1) that "ravva" continues to be the same commodity as rice and hence not liable to be taxed; (2) the assessees are entitled to exemption under G.O. Ms. No. 1061. Revenue dated 8/11/1974, by which "ravva" was liable to be taxed only at 1 per cent; (3) that this commodity was taxable only at 1 per cent and the amendment made to item 144(b) of the First Schedule to the Act by Act 18 of 1985 with effect from 1/07/1985, is only clarificatory in nature. The Tribunal has rejected the first two contentions, but has accepted the third contention of the assessees.