AGARWAL INDUSTRIES LIMITED Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) THIS Special Appeal is filed under Section 23(1) of the Andhra Pradesh General Sales Tax Act, 1957 (for short "the GST Act") by the assessee challenging the order dated 13.7.2010 of the respondent.

(2.) THE appellant-assessee is a company registered under the Companies Act, 1956 engaged in the manufacture and sale of vegetable oils, vanaspathi. It is registered as a dealer on the rolls of the Commercial Tax Officer, Gowliguda, Hyderabad during the year 2000-01 and at the time of filing this appeal on the rolls of the Commercial Tax Officer, Special Commodities Circle, Saroornagar Division under the GST Act and also under the Central Sales Tax Act, 1956( for short "CST Act"). It affects sales within the State, CST sales and consignment sales through agents in other States. The Commercial Tax Officer (Int)- III, Enforcement Wing, Hyderabad conducted cross verification of transactions claimed as consignment sales by the appellant for the period 1.4.2000 to 30.6.2000 covering a turnover of Rs.1,05,08,900/- in respect of ten dealers of Tamilnadu and Karnataka and found them to be fictitious. He therefore passed provisional assessment order dated 20.3.2001 disallowing claim for exemption on the entire turnover of Rs.6.80 crores pertaining to the three month period from 1.4.2000 to 30.6.2000.

(3.) THEREUPON , the Deputy Commissioner (CT), Abids took up the assessment of the appellant under the CST Act for the year 2000-01. He verified the audit report filed by the appellant as required under the Act and proposed to disallow exemption of Rs.39,89,47,477/- on alleged consignment sales turnover. The basis for the proposal was that the some consignees were not existing or were found not registered on the rolls of the department in the respective states; though the names of some of the consignees tally with registration certificate numbers, the said consignees were not traceable at the addresses furnished by the assessee and the whereabouts of the said dealers were not known; that the assessing authorities of the said dealers certified that the said dealers neither filed returns nor paid any taxes to the department; in some cases although the consignees and their registration certificate numbers given by the assessee are tallying, they were found to be doing business in some other commodities other than vegetable oils.