1991 (3) TMI 339 - HC - VAT and Sales Tax

Summary

Issues:
Levy of tax on "C purlins" manufactured from iron skelp and H.R. coils under the Andhra Pradesh General Sales Tax Act, 1957.

Detailed Analysis:

The judgment concerns a revision filed under section 22 of the Andhra Pradesh General Sales Tax Act, 1957, challenging the orders of the Sales Tax Appellate Tribunal confirming the tax levy on "C purlins" manufactured by the petitioner. The petitioner argued that the goods purchased had already suffered tax under the Act and, post-manufacture, the products remained under the category of "iron and steel," thus not constituting a change in commodity. The petitioner contended that taxing these goods violated the principle of not taxing declared goods at more than one point and at specified rates under the Central Sales Tax Act, 1956.

The Tribunal, considering relevant precedents, held that the goods manufactured by the petitioner were distinct commodities from the purchased goods, justifying the tax levy. The petitioner relied on decisions from the Bombay and Orissa High Courts, arguing that the goods should not be taxed separately under the Act. However, the Tribunal found that the specific provisions and exemptions in those judgments did not apply to the present case under the Andhra Pradesh General Sales Tax Act.

The High Court analyzed the Act's provisions, specifically focusing on the Third Schedule's treatment of various sub-items under "iron and steel" as distinct commodities for tax purposes. It noted that the Act did not provide exemptions for goods made from iron and steel unless explicitly stated. By contrasting the treatment of other items like "hides and skins," where specific relief was granted, the Court rejected the petitioner's argument that the goods sold were not liable to tax based on the Act's scheme. Consequently, the revision was dismissed, upholding the tax levy on the petitioner's manufactured goods.

In conclusion, the High Court dismissed the petition, affirming the Tribunal's decision to levy tax on the "C purlins" manufactured by the petitioner from iron skelp and H.R. coils, as the goods were considered distinct commodities under the Andhra Pradesh General Sales Tax Act, 1957.