1977 (10) TMI 103 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of valid C forms for tax rate determination.

Analysis:
The High Court of Andhra Pradesh heard a revision against the Sales Tax Appellate Tribunal's order, which partly dismissed the assessee's appeal regarding the tax rate on specific transactions covered by valid C forms. The dispute focused on the differential tax rate for items 2, 4, 6, and 7 mentioned in the Tribunal's order. The assessee, a firm dealing in rock phosphate, supplied materials to the Indian Iron and Steel Corporation Ltd. under various contracts. For items 2 and 4, the Steel Corporation ordered a specific quantity, but the assessee supplied slightly more than the ordered quantity. The Court analyzed whether this excess supply was covered by the existing contracts or constituted a separate agreement not eligible for the concessional tax rate. It was determined that the excess supply was within a reasonable margin and was part of the existing contracts, thus qualifying for the concessional tax rate.

Regarding item 6, where the quantity supplied exceeded the approximate contracted amount, the Court emphasized that the contract specified an approximate quantity, not a definite one. Therefore, the excess supply was also considered part of the existing agreement and eligible for the concessional tax rate. However, for item 7, the Court found that the excess quantity supplied was not adequately supported by the existing contract covered by the C form. The Court upheld the Tribunal's decision to tax the excess turnover at the regular rate rather than the concessional rate. Consequently, the revision was allowed for items 2, 4, and 6, while dismissed for item 7. Each party was directed to bear their costs, with an additional advocate's fee of Rs. 200.