STATE OF A P Vs. HINDUSTHAN SHIPYARD LTD

JUDGEMENT

(1.) QUESTIONING the order dated December 23, 2003 passed in T. A. No. 178 of 1999 by the Sales Tax Appellate Tribunal, Hyderabad, the State preferred the present tax revision case.

(2.) BEFORE the appellate authority, on behalf of the State, it has been contended that the Visakhapatnam Municipal Corporation is entrusted with the duty of supplying water in its jurisdiction and it is not a dealer doing business under the provisions of the Andhra Pradesh General Sales Tax Act. It has been also contended that as per section 7a of the Visakhapatnam Municipal Corporation Act, 1979 the Corporation can levy and collect pipeline service charges from every owner or occupier of the premises to which water connection has been given and at such a rate prescribed to the different categories as may be specified.

(3.) IT is further contended by the learned Special Government Pleader before this Court that because the Corporation is collecting minimum charges it cannot be said that the transaction is sale of water but it is providing service of pipeline connection on minimum charges irrespective of the use or otherwise of the water.