1970 (3) TMI 130 - HC - VAT and Sales Tax

Summary

Issues:
1. Competency of Deputy Commissioner to revise order under section 20(2) of Andhra Pradesh General Sales Tax Act.
2. Determination of the location where the sale of goods was completed - Andhra area or Telangana area.

Competency of Deputy Commissioner to revise order under section 20(2) of Andhra Pradesh General Sales Tax Act:
The case involved a dispute regarding the Deputy Commissioner of Commercial Taxes' competence to revise the order of the assessing authority under section 20(2) of the Andhra Pradesh General Sales Tax Act. The petitioners, groundnut oil-millers in Telangana area, had filed monthly returns before the Act's commencement. The Commercial Tax Officer exempted a turnover representing the value of groundnuts purchased before the Act's enforcement. The Deputy Commissioner issued a notice to cancel this exemption, claiming the purchase was completed only in Warangal, not Andhra area. The petitioners argued that as the goods were to be delivered in Andhra area, the sales were exempt under the Hyderabad General Sales Tax Act. The court held that the Deputy Commissioner was competent to revise the assessment under section 20(2) of the Act, as the revisional jurisdiction's exercise did not affect the petitioners' rights.

Determination of the location where the sale of goods was completed:
The second issue revolved around whether the sale of goods was completed in Andhra area or Telangana area. Despite the goods being booked for delivery in Andhra area, the court found that the property in the goods passed only at Warangal, where the seller retained ownership until delivery and payment. The Tribunal correctly determined that the sales were not complete in Andhra area, making the provisions of the Hyderabad General Sales Tax Act applicable. Consequently, the petitioners were not entitled to the exemption on the disputed turnover. The court dismissed the revision, upholding the Tribunal's decision and ruling against the petitioners.

In conclusion, the High Court of Andhra Pradesh dismissed the revision petition, affirming the Deputy Commissioner's competence to revise the assessment under the Andhra Pradesh General Sales Tax Act and determining that the sales of goods were completed in Warangal, not Andhra area, thereby denying the petitioners' claim for exemption on the turnover.