LAWS(APH)-1996-12-33

HINDUSTAN SHIPYARD LIMITED Vs. STATE OF ANDHRA PRADESH

Decided On December 23, 1996
HINDUSTAN SHIPYARD LIMITED Appellant
V/S
STATE OF ANDHRA PRADESH Respondents

JUDGEMENT

(1.) M/s. Hindustan Shipyard Limited, Visakhapatnam, is the petitioner in these tax revision cases. As facts giving rise to these cases and contentions urged are common, we have heard them together and are disposing of by a common judgment.

(2.) The petitioner, under different contracts, delivers ships to various persons. It is the nature of the transaction which is the subject-matter of these contracts that is debated before us. The contention of the petitioner is that the nature of transaction covered by the contracts is one of the agreement to build the ship, in other words a works contract. Whereas the contention of the sale tax authorities is that the transaction was nothing but sale of goods. The assessing authorities levied the tax on those transaction treating them as agreements of sale of ships. The appellate authority - Deputy Commissioner dismissed the appeals. Not satisfied with the orders of the appellate authority - Deputy Commissioner, the petitioner filed appeals before the Sales Tax Appellate Tribunal. The Tribunal disposed of the appeals filed by the petitioner in respect of different assessment years following its own decision in T.A. No. 566 of 1985 and batch dated 19/07/1989. In view of the said judgment and following the judgment of this Court in Hindustan Shipyard Ltd. v. Commercial Tax Officer (1970) 1 An WR 197, the Tribunal allowed certain appeals which, according to it, are covered by the ratio of the said judgment and dismissed certain other appeals holding that the said judgment had no application having regard to the terms of the contract in those cases. Challenging the validity of the orders of the Tribunal, the above said revisions are preferred by the petitioner.

(3.) Sri P. Ramachandra Reddy, the learned Senior Counsel appearing for the petitioner, submits that the only distinguishing feature relied upon by the Tribunal in dismissing the appeals is the risk and insurance clauses and that similar clause are found in the contract which is the subject-matter of the judgment of Division Bench in Hindustan Shipyard case (1970) 1 An WR 197 (AP), which also relates to the same petitioner for the assessment year 1967-68.