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TMI Blog2004 (10) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... ime of first sale could be again taxed under section 5C of the Andhra Pradesh General Sales Tax Act, 1957 (for short the Act ). It is not disputed that under section 5 of the Act, cool drinks and icecreams are taxable as Schedule goods in terms of entry 108 and entry 110 of the First Schedule to the Act. It is also not disputed that the goods in the present cases had suffered tax under section 5 of the Act. The contention of the learned counsel for the appellants is that once goods suffered tax in terms of section 5 of the Act, they could not again be made exigible to tax under section 5C of the Act, if they were sold in a hotel. Section 5C of the Act, at it stood at the relevant point of time, lays down that: Section 5C. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f transfer of right to use any goods for any purpose. This provision was interpreted by a judgment of the division Bench of this court reported in I.T.C. Classic Finance and Services v. Commissioner of Commercial Taxes [1995] 97 STC 330 and the court came to the conclusion that once the goods had suffered tax under section 5, they could not be again taxed under section 5E of the Act. Both the sections, i.e., section 5C and section 5E, at the relevant point of time, were similar paramateria. Section 5E of the Act, as it stood before the amendment, is also reproduced. Section 5E. Tax on the amount realised in respect of any right to use goods. Every dealer who transfers the right to use any goods for any purpose, whatsoever, whether or not f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elves in agreement with the conclusion drawn in Urvasi Bar Restaurant case [1999] 29 APSTJ 112 (AP). Learned Government Pleader for Commercial Tax referred to State of Andhra Pradesh v. Gateway Hotel [1992] 86 STC 39 (AP), and submits that the right of recovering tax under section 5C of the Act with respect to liquor has already been upheld by this court in this judgment. We have gone through the judgment. The judgment is also very brief and is reproduced below: The appellate Tribunal has taxed the sales of drinks (whether intoxicating or not) at the rate five paise in a rupee, in view of the provisions of section 5C of the Andhra Pradesh General Sales Tax Act, 1957. The case of the department was that the hotel was liable to pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ains to the milk purchased from unregistered dealers and sold after conversion into curd. This question has already been decided by this court in Krishna Enterprises v. State of Andhra Pradesh [1990] 10 APSTJ 79, and controversy stands covered by this judgment. The court found that: In this case the petitioner purchases milk. It is admitted that the milk is taxable as general goods. It is also admitted that the person from whom the petitioner purchases milk was not a registered dealer and no tax was paid by him. In such circumstances he is liable to pay the tax and it is immaterial whether he supplies to his customers milk as such or he converts milk into curd and then supplies the same to his customers. The special appeals are acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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