BALAJI AGENCIES Vs. COMMISSIONER OF COMMERCIAL TAXES HYDERABAD

JUDGEMENT

(1.) This special appeal is directed against the order of the Commissioner of Commercial Taxes dated 31/10/1988, passed in exercise of his powers under sub-section (1) of section 20 of the Andhra Pradesh General Sales Tax Act, 1957 ("the Act", for short), holding that "Honeyrex" should be treated as general goods taxable as such under the provisions of the Act and not as falling under entry 44-A of the First Schedule to the Act as held by the Appellate Deputy Commissioner in his order dated 25/11/1985, while allowing the appeal before him of the appellant herein and reversing the assessment order dated 9/07/1985, of the Commercial Tax Officer bringing to tax the turnover for the assessment year 1984-85 relating to the sales of "Honeyrex" treating it as general goods. It is not in dispute that the sales of "Honeyrex by the appellant herein during the assessment year 1984-85 were second sales and if "Honeyrex" is to be treated as general goods, the turnover relating to the said sales would be attracted to tax. The said turnover will not be attracted to tax, if "Honeyrex" falls under entry 44-A of the First Schedule to the Act because, then, only first sales of "Honeyrex" in the State would be attracted to tax. The short but troublesome question in the present special appeal is whether "Honeyrex" falls under entry 44-A of the First Schedule of the Act. It is not the contention of the appellant that it could fall under any other entry in the Schedules to the Act as in force at the relevant time.

(2.) The present entries 44 and 44-A in the First Schedule were introduced by Act 49 of 1976 with effect from 1/09/1976, in the place of the earlier entry 44 which was as follows :

(3.) In view of this and in view of the working of entry 44-A, it is necessary to read the two entries, as they exist now, together. They are as follows :