STATE OF ANDHRA PRADESH Vs. UNITY WIRE INDUSTRIES

JUDGEMENT

(1.) IN this revision by the State the question that arises for consideration is, whether the galvanised wire drawn from a wire of a trucker gauge constitutes a different commercial commodity from that of wire. For the assessment year 1982 -83 the petitioner was assessed under the A.P. General Sales Tax Act, 1957 (for short "the Act"). The turnover of Rs. 32,97,685 -75 was exempted on the ground of second sales of G.I. wire, M.S. wire and wire rods. In exercise of the revisional power, the Deputy Commissioner (CT) revised the assessment and brought the tax to exempted turnover. Against the order of the revising authority, the respondent -assessee filed an appeal before the Sales Tax Appellate Tribunal. The Tribunal by order dated 4th April, 1988, held that the galvanised wire continued to be wire inspite of process of galvanisation. That order of the Tribunal is assailed in this T.R.C. That is how the question referred to above arose in this case.

(2.) HEARD the learned counsel for the petitioner as well as the learned Government Pleader for Taxes. Schedule III in the Act enumerates the goods in respect of which a single point tax only is leviable under Section 6 of the Act. Entry (2) (xv) of Schedule in which is relevant for our purpose, reads as under:

(3.) IT may be pointed out here that on the goods mentioned in the said entry the tax is leviable at the point of first sale. If the wire drawn from a thicker gauge is the same commercial commodity, then no tax will be leviable on the sale of the galvanised wire drawn from thicker gauge. Whereas the respondent -assessee contends that they are one and the same commercial commodity, the revenue would contend that they are two different commercial commodities. The Tribunal has taken the view that they are the same commodities.