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TMI Blog1989 (12) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... ld silver articles and utilises them in the manufacture of gold jewellery and silverware. Some of the old jewellery containing costly stones are resold after polishing and repair, if any. While taking weighment before purchase of the gold jewellery, even if the jewellery is studded with precious stones, the same are rarely removed. For the assessment years 1984-85 to 1986-87, the petitioner-firm was initially assessed to sales tax under the Andhra Pradesh General Sales Tax Act, 1957, by the Deputy Commercial Taxes Officer, Visakhapatnam. By the said assessment orders, the petitioner has been subjected to tax on the purchase value of old gold ornaments and silver articles from unregistered persons under section 6-A of the aforesaid Act at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the Commissioner of Commercial Taxes dated October 5, 1988. The petitioner also submitted that the Deputy Commercial Tax Officer, Visakhapatnam, is coercing the petitioner to pay the disputed tax and is threatening prosecution and has already issued the notice dated September 15, 1989, demanding the tax in dispute. The said notice has been filed as annexure P9. It is said that the tax for the four years is Rs. 25,459 and the petitioner is not in a position to pay the aforesaid liability. In the counter-affidavit, the position taken by the writ petitioner is traversed. The learned Government Pleader has brought to our notice the circular of the Government of Andhra Pradesh bearing No. 20487/CT. II 2/89-2 dated October 27, 1989. The effe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 20 and 21 of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957, read as follows: "20. Bullion and specie. 21.. Articles and jewellery made of bullion or species or both excluding precious stones." The Supreme Court in the case reported as Deputy Commissioner of Sales Tax v. G.S. Pai Co. [1980] 45 STC 58, was dealing with an entry similar to entry 20 seen in the Kerala Act. The Supreme Court was not concerned with an entry like entry 21, which we have quoted above. The circular dated October 5, 1988, does not take into account the wordings of explanation I to entry 21. Explanation I reads as follows: "The expression 'bullion' in items 20 and 21 means pure gold or silver and includes gold or silver mixed with co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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