ANJAN TRADING COMPANY Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THE petitioner in the above tax revision case, preferred against the order of the Sales Tax Appellate Tribunal, Andhra Pradesh, Hyderabad, in T. A. No. 29 of 1977 on its file, is a dealer in coriander, among other goods, at Guntakal. From the assessment year 1975-76, the petitioner was assessed to tax at the rate of four paise in the rupee under item 9 of the Second Schedule to the Act by the Commercial Tax Officer, Guntakal, on a turnover of Rs. 12,74,997, being the total value of first purchases of coriander effected by him in the State, among other items of turnover, which need not be detailed for the purpose of disposal of the above revision case. On appeal, the assessment was confirmed by the Assistant Commissioner (CT), Appeals, Kurnool, by her order dated 28th December, 1976. The order of the Assistant Commissioner was unsuccessfully challenged before the Appellate Tribunal.

(2.) THE legality of levy of tax on the turnover of coriander at the point of first purchase under item 9 of the Second Schedule to the Act was assailed before the Tribunal on two grounds. Firstly, it was urged that coriander was an oil-seed within the meaning of item 3 of the Third Schedule to the Act read with section 14 (vi) of the Central Sales Tax Act, 1956, that coriander was, therefore, one of the declared goods and that the turnover of coriander having suffered tax under the Central Sales Tax Act, the tax levied and collected under the Andhra Pradesh General Sales Tax Act was liable to be refunded. Secondly, it was contended that in case coriander was not held to be an oil-seed, the turnover was exigible to tax at multi-point sale as any of the general goods and not at the point of first purchase. Before us, the learned counsel for the petitioner gave up the first contention and, in our opinion, very rightly.

(3.) ITEM 3 of the Third Schedule to the Andhra Pradesh General Sales Tax Act covering oil-seeds, as it stood prior to the amendments effected by Act No. 4 of 1974, which came into force 1st April, 1973, was couched in the same language as item (vi) of section 14 of the Central Sales Tax Act, as it stood prior to its amendment by Act No. 61 of 1972. In conformity with the amendment of item (vi) of section 14 of the Central Sales Tax Act, effected by Act No. 61 of 1972, which came into effect on 1st April, 1973, item 3 of the Third Schedule to the Andhra Pradesh General Sales Tax Act was amended by the State Act No. 4 of 1974, which came into force on 1st April, 1973. Under the amended item 3 of the Third Schedule to the Andhra Pradesh General Sales Tax Act, except castor, coconut, groundnut or peanut and cotton seeds, the rest of the oil-seeds specifically enumerated in item (vi) of section 14 of the Sales Tax Act, are listed. Castor, coconut, groundnut or peanut and cotton seeds are included as items 4, 5, 6 and 6-A of the same schedule. It may be noted that neither under section 14 of the Central Sales Tax Act nor in the Third Schedule to the Andhra Pradesh General Sales Tax Act, coriander is included as one of the "declared goods". Sections 6, 8 and 9 of the Central Sales Tax Act govern the levy of tax on inter-State sales of "declared goods". A reading of the provisions contained therein makes it clear that if any goods are declared to be goods of special importance under section 14 of the Central Sales Tax Act, by virtue of sections 8 and 9 of the said Act, the sale of "declared goods" in the course of inter-State trade or commerce is exigible to tax under the Central Sales Tax Act to the extent and in the manner provided under the Andhra Pradesh General Sales Tax Act. If the goods are so assessed to tax and the tax has been collected, the tax, if levied and collected under the Andhra Pradesh General Sales Tax Act, is liable to be refunded under the Andhra Pradesh General Sales Tax Act, is liable to be refunded under section 15 (b) of the Central Sales Tax Act read with the proviso to section 6 of the Andhra Pradesh General Sales Tax Act. Though, before the Appellate Tribunal, it was contended on behalf of the petitioner that container was an oil-seed within the meaning of item 3 of the Third Schedule to the Andhra Pradesh General Sales Tax Act read with section 14 (vi) of the Central Sales Tax Act, the learned counsel for the petitioner, advisedly, has not pressed the contention, inasmuch as the lists of oil-seeds enumerated in section 14 (vi) of the Central Sales Tax Act and specified under item 3 of the Third Schedule to the Andhra Pradesh General Sales Tax Act are exhaustive and coriander does not find a place in either of the lists. What is, however, urged by the learned counsel for the petitioner is that in the decision in State of Orissa v. Dinabandhu Sahu and Sons ([1976] 37 S. T. C. 583 (S. C.)), their Lordships of the Supreme Court, while construing section 14 (vi) of the Central Sales Tax Act, declared that coriander was an oil-seeds, that, consequent upon the decision of the Supreme Court, item 9 relating to coriander and included in the Second Schedule to the Act should be deemed to be non est and that the disputed turnover of coriander is not liable to tax at the point of first purchase, but exigible to tax at multi-point sales as any of the general goods.