STATE OF ANDHRA PRADESH Vs. BHAVANI ENTERPRISES

JUDGEMENT

(1.) The short issue that fell for consideration before the Andhra Pradesh V.A.T. Appellate Tribunal in T.A.No.417 of 2011 was, whether the medicines meant for poultry, fall under Entry 37 or Entry 80A of the First Schedule of the A.P. General Sales Tax Act, 1957 (for short the Act). The State Government has issued G.O.Ms.No.746, Revenue (CT.II) Department, dated 10.09.1996, under Section 9 (1) of the Act, envisaging that second and subsequent sales of Drugs and Medicines as defined in Section 3 (b) of the Drugs and Cosmetics Act, 1940 (for short Drugs Act), as included in Entry against S.No.37 of the First schedule, are exempted from payment of taxes. In that context, the above mentioned issue arose before the Tribunal.

(2.) The respondent-assessee was denied exemption on the ground that the medicines manufactured by it fall under Entry 80A. On a detailed analysis of the language of both the Entries and the definition of Section 3 (b) of the Drugs Act, the Tribunal held that the medicines meant for poultry manufactured by the respondent- assessee falls under Entry 37, thereby it is entitled to exemption as per G.O.Ms.No.746, dated 10.09.1996.

(3.) Mr.Shaik Jeelani Basha, learned Special Standing Counsel for Commercial Taxes, has submitted that the Tribunal has committed a serious legal error in holding that the medicines manufactured by the respondent-assessee fall under Entry No.37 of the First Schedule. We have considered this submission with reference to the material on record.