PRAKASH AGENCIES Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The short but interesting question that arises for consideration in this T.R.C. is whether "Rita" falls under item 36 of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957 (for short, "the Act").

(2.) The original authority assessed the petitioner-assessee on the turnover of Rita amounting to less than rupees two lakhs at the rate of 10 per cent taking the view that it falls under item 36. The petitioner carried the matter in appeal to the Appellate Deputy Commissioner contending that it does not fall under item 36, that it falls under general item, that it would be entitled to an exemption as the total turnover is less than two lakh rupees and that even if it exceeds two lakh rupees the rate applicable to it would be only 5 per cent and not 10 per cent as levied. The appeal was dismissed. The matter was further carried in appeal to the Sales Tax Appellate Tribunal. The Tribunal by order dated 15/11/1990, dismissed the appeal. As against that order of the Tribunal the present revision has been filed.

(3.) Shri Girish Kumar, learned counsel for the petitioner, contends that Rita, which is a liquid concentrate, cannot be used or applied to the hair in its original state; it has to be mixed with coconut oil or gingelly or mustard oil. Therefore, it cannot be treated as hair lotion, hair oil or hair tonic. He also contends that the classification made by the assessing authority as confirmed in the appeals was incorrect in law. He relied upon the judgments of Kerala, Bombay and Madras High Courts.