STATE OF ANDHRA PRADESH Vs. NARSING INDUSTRIES

JUDGEMENT

(1.) This tax revision case, under section 22(1) of the Andhra Pradesh General Sales Tax Act, 1957 (for short, "the Act"), is directed against the order of the Sales Tax Appellate Tribunal in Tax Appeal No. 695 of 1986 dated 3/02/1987. The question that arose for consideration is :

(2.) The respondent is a dealer in coal and coke. In the assessment year in question the turnover of Rs. 11,40,366 was in respect of second sales of stoker coke. The assessee claimed exemption on the ground that the stoker coke falls within declared goods and, therefore, sales tax can be levied only at one point. The assessing authority allowed the exemption. However, the Deputy Commissioner (C.T.), in exercise of the powers under section 20(2) of the Act, revised the assessment made by the assessing authority and directed inclusion of the exempted turnover in the assessable turnover. On appeal by the assessee to the Sales Tax Appellate Tribunal, the order of the Deputy Commissioner was reversed and that of the assessing authority was restored taking the view that stoker coke is eligible for exemption on second sales. Aggrieved by that order of the Tribunal the Revenue filed this revision.

(3.) The learned Government Pleader contends that stoker coke does not fall within the meaning of entry 1 of the Third Schedule, as such, turnover of its second sale is not entitled to exemption. Shrimathi C. Jayashree Sarathy, the learned counsel for the assessee, on the other hand, contends that the petitioner manufactured stoker coke from out of coal and having regard to the wording of the entry it falls within the entry and there can be no tax liability on the second sale.