EMJAK INDUSTRIES LIMITED Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) The question at issue, in these two writ petitions is, whether the petitioners are "manufacturers" under section 5-B of the A.P. General Sales Tax Act, 1957, in order to claim the benefit of the lower rate of tax at four percent. in respect of the raw materials purchased by them and utilised for the manufacture of finished products within the State ?

(2.) The petitioners in both the writ petitions are registered dealers under the A.P. General Sales Tax Act; they deal in biscuits. As the facts in both the cases are similar, suffice it to refer to the facts in one case briefly.

(3.) The petitioner in Writ Petition No. 14105 of 1990, viz., M/s. Emjak Industries Limited, is a registered dealer under the Andhra Pradesh General Sales Tax Act (hereinafter referred to as "the Act"), engaged in the business of manufacture and sale of biscuits known as "Ampro biscuits". It purchases raw materials such as maida, sugar, fats, chemicals and packing materials and claims to utilise the same in the manufacture of biscuits. It had entered into an agreement with the 4th respondent, viz., M/s. Ampro Food Products (P) Limited, Hyderabad, on 26/08/1987, under which the 4th respondent agreed to manufacture biscuits with the raw materials supplied by the petitioner, according to the requirements of the petitioner as per the terms and conditions incorporated in the agreement.