ORIENT CEMENT Vs. STATE OF A P

JUDGEMENT

(1.) THESE tax revision cases as well as the writ petitions are filed by the dealers aggrieved by the orders of the Sales Tax Appellate Tribunal (hereafter referred to as "the Tribunal") as well as the subsequent assessment orders where a common issue arises for consideration of this court.

(2.) ALL the petitioners herein are the dealers under the provisions of the Andhra Pradesh General Sales Tax Act, 1957 (for brevity, "the APGST Act") as well as under the Central Sales Tax Act, 1956 (for brevity, "the CST Act") and are the manufacturers having established their manufacturing units in the State of Andhra Pradesh. In the assessments, all the dealers claimed the benefit of sales tax deferment with reference to the additional turnover in terms of quantity. The claim of the dealers was rejected by the lower authorities, therefore, they preferred appeals before the Tribunal. Before the Tribunal also, the dealers have advanced the contention that the benefit of deferment of sales tax in respect of expanded units have to be computed as and when a particular unit has achieved the base production in terms of quantity as defined under G. O. Ms. No. 108, dated May 20, 1996 and not with reference to either the turnover or with reference to the level of sales tax paid or payable. But the said contention was not accepted by the Tribunal also. Hence all the dealers are with the present tax revision cases.

(3.) THE term "base turnover" was used in respect of expansion of units, i. e. , where the existing units have incurred an additional capital investment, thereby enhanced its capacity of production. The base turnover for this purpose shall be the best production achieved during three years preceding the year of expansion or the maximum capacity expected to be achieved by the industry as per the appraisal made by the financial institution before funding the project, whichever is higher. Before proceeding to consider this aspect, it would be proper to refer to the circumstances under which the said G. O. Ms. No. 108, dated May 20, 1996 was issued.