STATE OF ANDHRA PRADESH Vs. GODAVARI PLYWOODS LIMITED

JUDGEMENT

(1.) All these tax revision cases filed by the State arise out of the common order dated 22/04/1983, of the Sales Tax Appellate Tribunal, Andhra Pradesh, Hyderabad, allowing the appeals preferred by M/s. Godavari Plywoods Ltd., the respondent in all these cases.

(2.) The respondent is a company incorporated under the Companies Act, 1956, on 11/10/1973. It was granted permission to set up an industrial unit near Rampachodavaram village, East Godavari district, which is a scheduled area notified by the President of India under sub-para (1) of paragraph 6 of the Fifth Schedule to the Constitution of India, for the manufacture of commercial and decorative plywood. It purchased indigenous machinery worth Rs. 5,25,891.30 during the year 1976 and erected a pilot plant. During the year 1977-78 it imported machinery worth Rs. 70,43,113.60 and also purchased indigenous machinery worth Rs. 17,42,379.34 and installed it. The Electricity Board had given high tension electricity connection to the respondent-unit on 1/09/1977.

(3.) It is stated by the learned counsel for the respondent that a pilot plant was installed by the respondent for the purpose of test production on experimental basis, to test the quality of the product as well as the raw materials. The pilot plant was operated with the help of a generator. In that pilot plant 28,604.93 square meters of plywood during the period from 1/09/1976 to 17/12/1976 and 1,15,698.52 square metres of plywood during the period 8/12/1976 to Dece 17/12/1976 was produced. The respondent effected sales of plywood worth Rs. 32,502.43 during the period from 8/12/1976 to Dec 17/12/1976 and Rs. 59,197.61 during the period from 18/12/1976 to De 1/12/1977.