9911796707
TMI Blog1988 (3) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... dealer under the Andhra Pradesh General Sales Tax and Central Sales Tax Acts, trading in paddy and rice at Warrangal. For the assessment year 1978-79, the assessing authority subjected a turnover of Rs. 30,623.97 representing the inter-State sales of rice effected by the petitioner and not covered by declarations in form C, to tax of Rs. 573.88 under section 8(2)(a) of the Central Sales Tax Act. The Deputy Commissioner (Commercial Taxes), Warrangal, however, reopened the assessment in exercise of powers conferred upon him under section 20(2) of the Act, and subjected the said turnover to tax in a sum of Rs. 2,450. The assessing authority first determined tax on the turnover of Rs. 30,623.97 at the rate of 4 per cent. From out of the said am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent can be claimed only on production of a declaration in form C covering the goods taxed. Where such a declaration is not furnished, sub-section (2) of section 8 enacts a penal rate of tax which, in respect of declared goods, shall be calculated at twice the rate applicable to the sale or purchase of goods inside the appropriate State and, in the case of goods other than declared goods, shall be calculated at the rate of 10 per cent or at the rate applicable to sale or purchase of such goods inside the appropriate State, whichever is higher. Paddy and rice are declared goods with effect from 7th September, 1976. Section 14 of the Central Sales Tax Act lists out "declared goods". Paddy and rice are included in the list. Section 15 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to entries 21 and 22 provides that, where tax has been levied under the Andhra Pradesh General Sales Tax Act in respect of sale or purchase inside the State of any paddy, the tax leviable on rice procured from out of that paddy shall be reduced by the amount of tax on such paddy. It is, therefore, clear that the proviso to section 6 of the Andhra Pradesh General Sales Tax Act read with Explanation III to entries 21 and 22 of the Third Schedule to the Act, conforms to the mandate contained in section 15(c) of the Central Sales Tax Act. Admittedly, the turnover which is the subject-matter of this tax revision case represents sales of declared goods outside the State of Andhra Pradesh effected by the assessee and unsupported by any declaration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to the extent indicated therein. The Deputy Commissioner (Commercial Taxes), Warrangal, rightly quantified the liability to tax on the turnover representing the sale of rice effected by the petitioner outside the State of Andhra Pradesh and not supported by any declarations in form C. The Tribunal, in its well reasoned order, upheld the action of the Deputy Commissioner. Sri Dasaratharama Reddi, the learned counsel appearing for the petitioner, however, relies upon the decision of a Division Bench of this Court in Aitha Narasaiah Co. v. State of Andhra Pradesh [1979] 43 STC 183, in respect of his submission that the word "rate" occurring in section 8(2)(a) of the Act, could only mean the amount of tax which becomes actually payabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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