9911796707
TMI Blog1975 (11) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... and pelalu (beaten, parched and puffed rice) under a valid and subsisting licence issued under the Andhra Pradesh Foodgrains Dealers Licensing Order, 1964. The petitioners purchase paddy and manufacture powa, muramura and pelalu. Tax is paid on the purchase of paddy at the point of first purchase in accordance with section 5(2)(b) read with entry 8 of the Second Schedule of the Act. It appears, the Government of Andhra Pradesh through G.O. Ms. No. 208 Rev. (S) dated 21st March, 1973, withdrew the exemption given earlier in G.O. Ms. No. 2197 dated 19th December, 1961, exempting the collection of any sales tax on powa, muramura and pelalu. Consequently, notice dated 23rd November, 1973, was issued by the Deputy Commercial Tax Officer, Janaga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stall or any other place for consumption on the premises and if the total turnover relating to these articles is not less than Rs. 40,000 for the year, the tax shall be calculated at the rate of three paise in the rupee, on the first Rs. 39,999 and at the rate of four paise in the rupee on the balance of the turnover. (2) Notwithstanding anything contained in sub-section (1), the tax under this Act shall be levied- (a) in the case of the goods mentioned in the First Schedule at the rates and only at the point of the sale specified as applicable thereto, effected in the State by the dealer selling them, on his turnover of sales in each year relating to such goods irrespective of the quantum of turnover; (b) in the case of the goods menti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the rupee at the point of sale by the first wholesale dealer in the State effecting the sale. The question, therefore, is whether powa, muramura and pelalu are also products obtained from paddy and are liable only to tax under item 66(b). It is also evident that the Government under the G.O. Ms. No. 2197 Rev. dated 19th December, 1961, had totally exempted collection of any sales tax on the sale of powa, muramura and pelalu. Apparently they are considered as products of paddy obtained without undergoing any chemical process. I do not, therefore, think that any tax can be levied under section 5(1) of the Act thereby permitting multipoint tax. However, as I have said that they are products of paddy they fall under item 66(b) and, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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