STATE OF ANDHRA PRADESH Vs. JAYANTI TIMBER TRADERS

JUDGEMENT

(1.) THE State of Andhra Pradesh filed this Writ Petition against the impugned order passed in T.A. No. 130 of 1997 dated 01 -06 -2001 by the Sales Tax Appellate Tribunal, Andhra Pradesh, Hyderabad (for short, 'the Tribunal'), wherein the order passed by the Appellate Deputy Commissioner (CT) was set aside exempting the compensation paid towards delay in execution of work from turnover tax. The simple dispute is relating to compensation received from L & T can be included in the turnover of the assessee. The appellant filed copy of reference No. LTOG/CAML/92/2228 dated 25 -05 -1992 with regard to settlement of extra cost of Rs. 5,50,000/ -. Actually, the amount was extracted balance sheet of the appellant and it was included in the turnover and assessed to tax.

(2.) AGGRIEVED by the said order, the State preferred this appeal on the ground that the amount was received as extra cost not as compensation as per the proceedings issued by M/s. L & T in reference No. LTOG/CAML/92/2228 dated 25 -05 -1992 and when it is extra cost, it shall be included in the turnover and it is mentioned in trading & profit and loss account and balance sheet for the year 1992 -93. When the amount was received towards extra cost, it shall be included in the turnover and the amount is liable for tax and prayed to set aside the impugned order passed by the tribunal.

(3.) CONSIDERING rival contentions the short point that arises for consideration is: