STATE OF ANDHRA PRADESH Vs. PALLAVI POTTERIES LTD

JUDGEMENT

(1.) The question urged before us by the learned Government Pleader in this Tax Revision Case, filed by the Revenue, is whether stoneware glazed pipes are 'general goods' or do they fall within the meaning of 'water supply and sanitary fittings' in Entry 102 of First Schedule to the Andhra Pradesh General Sales Tax Act, 1957(which will hereinafter be referred to as 'the Act'). The turn over, which is subject matter of controversy, relates to the assessment year 1982-83. We may point out that by Act 19 of 1986 Entry 102. A "Stone ware pipes" has been inserted in the Fi rst Schedule. Therefore, the question, now debated before us, has limited application only for the period prior to June 1,1986.

(2.) The assessee was carrying on business in manufacture and sale of stone ware glazed pipes which were being assessed to sales tax under the Act. During the assessment year in question the assessing authority treated stone ware glazed pipes as 'general goods' and assessed the turn over of sales of the said goods to sales tax accordingly. However, the Deputy Commissioner in exercise of the revisional power under Section 20 of the Act, revised the order of assessment and directed that the said goods be treated as falling under Entry 102 of the First Schedule by his order dated March 10, 1986. That order was appealed against by the assessee before the Sales Tax Appellate Tribunal. The Tribunal followed its own decision dated June 29,1978 in T.A.Nos. 798 of 1977 and 63 and 66 of 1978 in the case of M/s. Padmanayaka Industries vs. State of Andhra Pradesh and held that the said goods fall under 'general goods' and allowed the appeal on October 13, 1986. It is against that order the present revision has been filed by the State.

(3.) The learned Government Pleader elaborated his submissions by making reference to the order of the Deputy Commissioner which records that in 17 cases on the second sale of those goods the turn over was granted exemption treating themas' sanitary fittings', therefore, in the order of assessment relating to the first sale also they should be treated as 'sanitary fittings' and taxes as falling under Entry 102 of the First Schedule. The expression 'Sanitary fittings' fell for consideration of the Supreme Court in Deputy Commissioner of Sales Tax vs. Pai & Co. The question there arose under Kerala General Sales Tax Act, 1963. The Surpeme Court has laid down that the word "fittings" in the entry was intended to refer to articles or things which were fitted or fixed to the floor or walis of a building and they may in a given case include even articles or materials fitted or fixed outside provided they could be considered as attached or auxiliary to the building or part of it, such as a pipe carrying faecal matter from the commode to the septic tank but they could not include pipes laid underground for carrying water supply. The short question that arises for our consideration is whether there is material to satisfy this test laid down by the Supreme Court. A careful perusal of the order of the Deputy Commissioner does not show that while treating those goods as falling under Entry 102 the authorities were satisfied that the requirements of the said test are satisfied. Even before the Tribunal it was not contended that the requirements of the test laid down by the Supreme Court were satisfied and therefore the goods shall be treated as falling under Entry 102. In the absence of this requirement, we are not inclined to interfere with the order of the Tribunal. Consequently we find no merit in the Tax Revision Case. It is accordingly dismissed. No costs.