STATE OF ANDHRA PRADESH Vs. SOUTHERN STEEL LIMITED

JUDGEMENT

(1.) These two tax revision cases raise common questions and so, they are disposed of by this common judgment.

(2.) T.R.C. No. 167 of 1989 arises out of T.A. No. 626 of 1985 and T.R.C. No. 161 of 1989 out of T.A. No. 178 of 1986. The disputed turnover involved in T.R.C. No. 167 of 1989 is Rs. 1,06,64,589 and in T.R.C. No. 161 of 1989, Rs. 99,09,620. T.R.C. No. 167 of 1989 relates to the assessment year 1980-81 and T.R.C. No. 161 of 1989 relates to the year 1979-80. The Deputy Commissioner (Commercial Taxes), in exercise of his revisional jurisdiction under sub-section (2) of section 20 of the Andhra Pradesh General Sales Tax Act, 1957, (for short "the Act") revised the orders of the assessing authority in both the cases bringing to tax the aforesaid disputed turnovers on the ground that the strips and hoops processed and sold by the assessee were commodities different from what were purchased by the assessee. The assessee carried the matter in appeal to the Sales Tax Appellate Tribunal, which restored the exemption granted by the assessing authority. Aggrieved by that, the State of Andhra Pradesh filed these two revision cases.

(3.) Sub-item (vi) of entry 2 of the Third Schedule to the Act is in the following terms : @@ ------------------------------------------------------------------------ Sl. Description of goods Point of levy Rate of No. tax ------------------------------------------------------------------------ 1. ........... 2. Iron and steel, that is to say : (i) to (v) ...................... (vi) sheets, hoops, strips and At the point 4 paise skelp, both black and of first sale in the galvanised, hot and cold in the State. rupee. rolled, plain and corrugated in all qualities, in straight lengths and in coil form, as rolled and in riveted condition; ------------------------------------------------------------------------@@