1990 (9) TMI 330 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of the term "cotton fabrics" under the Andhra Pradesh General Sales Tax Act, 1957.

Analysis:
The High Court of Andhra Pradesh addressed a tax revision case challenging the Sales Tax Appellate Tribunal's order related to various assessment orders before May 1, 1987. The case involved the interpretation of the term "cotton fabrics" under the Fourth Schedule of the Andhra Pradesh General Sales Tax Act, 1957. The Explanation to the Fourth Schedule linked the meanings of items 5, 6, and 7 to the Additional Duties of Excise (Goods of Special Importance) Act, 1957. The Supreme Court's interpretation of a similar provision in the Kerala General Sales Tax Act was considered, establishing a precedent for the case at hand.

The Supreme Court's decision in the State of Kerala v. Attesee case was referenced, where the definition of "cotton fabrics" under the Central Excises and Salt Act, 1944, was crucial. The judgment highlighted that the scope of exemption for "cotton fabrics" would align with the definition under the relevant Act at the time of assessment. Applying this principle, the Court concluded that rexine, a disputed fabric, fell within the ambit of "cotton fabrics" under the Andhra Pradesh General Sales Tax Act.

Moreover, it was established that the assessee had paid the additional excise duty as required by the Additional Duties of Excise (Goods of Special Importance) Act, 1957, for the relevant years. Consequently, the goods falling under the Fourth Schedule were exempt from the Andhra Pradesh General Sales Tax Act and the Central Sales Tax Act, 1956, as per section 8 (2-A) of the Central Sales Tax Act. As a result, the revision case was dismissed by the High Court, affirming the exemption status of the disputed goods from sales tax liabilities.

In conclusion, the judgment clarified the interpretation of "cotton fabrics" under the Andhra Pradesh General Sales Tax Act, emphasizing alignment with the definitions under relevant Acts and the payment of additional excise duty. The decision provided clarity on the exemption status of goods falling under the Fourth Schedule, ultimately leading to the dismissal of the revision case.