MITTER BRORS Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS revision is directed against the order of the Sales Tax Appellate Tribunal, in Tribunal Appeal No. 34 of 1976 dated 30th March, 1976, partly dismissing the appeal preferred by the assessee. The case of the assessee here and before the Tribunal was that all the transactions are covered by valid C forms and, therefore, the turnovers covered by these transactions should be subjected to tax at 3 per cent. and not at 10 per cent. The dispute in this revision is regarding the differential rate of tax. We are concerned with items 2, 4, 6 and 7 referred to in the order of the Tribunal.

(2.) THE assessee is a firm known as Messrs. Mitter Brothers, Pendurthi. The firm is a dealer in rock phosphate and it effected inter-State sales of rock phosphate. During the year 1969-70, the Indian Iron and Steel Corporation Ltd. placed several orders with the assessee-firm for supply of rock phosphate. In so far as items 2 and 4 are concerned, the Steel Corporation first placed an order dated 3rd April, 1969, followed by an amendment of the said order for 1,700 metric tons. The assessee supplied 1,055. 720 metric tons and submitted C forms for that transaction. The turnover of the material supplied under several consignments came to Rs. 2,04,310. 30. In the same year, it supplied 8 more consignments valued at Rs. 1,43,893. 61, the quantity of which is 733. 125 metric tons. For the total supply of 1,788. 845 metric tons, it submitted two C forms. It was found that when the Steel Corporation had placed an order for supply of 1,700 metric tons, the assessee had supplied in excess of that order 88. 845 metric tons of rock phosphate. Under item 2, the assessee supplied 116. 470 metric tons. The supply made by the assessee under the two items was valued by the department at Rs. 28,242. 34. It is for the reason that in respect of the excess quantity of rock phosphate supplied it was not covered by C forms that it was held that the turnover relating to this quantity is not exigible to tax under the concessional rate of 3 per cent. It may be seen from the facts stated above that the quantity found in excess was only 88. 845 metric tons when compared to the total quantity supplied. The order of the Steel Corporation was for supply of 1,700 metric tons. While loading into the wagons, there is bound to be some overloading for fear that there might be short supply. What has to be seen is whether the supply of rock phosphate was made pursuant to the two contracts or whether, in addition to the two contracts, the assessee had entered into another contract for supply of the excess quantity of 88. 845 metric tons. It does not appear from the facts stated that this small quantity of excess of 88. 845 metric tons was the result of another contract not covered by the contracts in question. We are, therefore, of the opinion that the slight margin cannot lead to the conclusion that this excess quantity was supplied pursuant to a contract not covered by the contracts in question. We, therefore, hold that the assessee is entitled to claim concessional rate of tax in respect of the turnover of Rs. 28,242. 34.

(3.) IN the result, the revision is allowed in so far the turnover in dispute covered by items 2, 4 and 6 is concerned and dismissed in respect of the turnover in dispute covered by item. The parties will bear their own costs. Advocate's fee Rs. 200. Ordered accordingly.