STATE OF ANDHRA PRADESH Vs. THE KCP LIMITED

JUDGEMENT

(1.) ALL these revisions filed by revenue against the impugned common order dated 15 -09 -2011 in T.A. Nos. 637, 638, 639, 640 of 2002 and 45 of 2003 passed by Sales Tax Appellate Tribunal, Andhra Pradesh, Visakhapatnam Bench (for short, 'the tribunal'). The respondent is a registered dealer on the rolls of ACTO, Macherla Circle, Guntur - II Division, manufacturer of cement and reported turnover of the business to ACTO. The ACTO, Macherla Circle, levied penalty on the ground that diesel purchased against C forms was misused. Aggrieved by the order of the ACTO, the respondent -assessee herein filed appeal before Appellate Deputy Commissioner (CT), Guntur, and the same was dismissed. Aggrieved by the orders of the ADC (CT), Guntur, the appellant preferred appeal before the tribunal, whereunder the contention of the respondent was upheld and allowed the appeal holding that diesel was not misused and it was used only for manufacturing purpose. The assessee engaged in manufacture and sale of cement and purchased diesel to utilize for captive power generation in manufacturing of cement. The assessee used diesel for transportation in vehicles such as tippers for transportation of limestone to factory from mines for manufacturing cement. Diesel was also being used for maintenance of lift which was used by technical persons for checking kiln as and when required.

(2.) THE tribunal, upon appreciation of law laid down by Apex Court in several decisions, held that the petitioner is entitled to utilize diesel though purchased against C forms since transportation of workers from mines to factory etc., is a part of manufacturing process and set aside the order passed by CTO.

(3.) LEARNED Special Standing Counsel for Commercial Taxes mainly contended that the principle laid down in J.K. Cotton Spinning & Weaving Mills Company Limited (supra) has no application to the present facts of the case. Even the principle laid down in Indian Copper Corporation Limited (supra) is not applicable to the present facts of the case and he placed reliance on the judgment rendered in Indra Singh & Sons Private Limited vs. Sales Tax Officer, Raigarh Circle, Raigarh and Others 17 STC 1966 SC 510.