9911796707
TMI Blog2025 (2) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Andhra Pradesh Beverages Corporation Limited and the petitioner. The subsequent sale of liquor by the petitioner to his customers would not be exigible to tax. Explanation-II to the definition of 'taxable turnover' stipulates that the sale prices relating to second and subsequent sale of goods, enumerated in Schedule VI, shall not form part of 'taxable turnover'. This would mean that the entire turnover of Rs. 4.54 crores, which is on account of sale of alcohol would have to be excluded from the taxable turnover of the petitioner. This would leave a turnover of Rs. 1,02,20,407/-, which is the turnover relating to sale of food. As the turnover in question, is less than Rs. 1.5 crores per year, the same would be taxable only under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner (CT), recovered incriminating material relating to the business of the petitioner for the period July, 2014 to October, 2015. An assessment order was passed against the petitioner, assessing the petitioner to tax of Rs. 61,13,078. This assessment was challenged before the erstwhile High Court of Andhra Pradesh, by way of W.P.No.38999 of 2016, which came to be allowed and the order of assessment were set aside by order, dated 12.02.2019, and the case was remanded to the original assessing authority for reassessment. This order was passed on the ground that the authorization given to the Deputy Commissioner, Guntakal was not available in a valid format. 3. Thereafter, the Deputy Commissioner, Ananthapur Division, authorized the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and the tax payable was reduced to Rs.46,13,078/-. 5. Aggrieved by the initial order, dated 06.01.2022, and rectification order, dated 25.02.2022, the petitioner has approached this Court by way of the present writ petition. 6. Sri G. Narendra Chetty, learned counsel appearing for the petitioner would reiterate the earlier arguments raised before the assessing authority. 7. The first contention of the petitioner is that the assessing officer, on the basis of some alleged incriminating material, has extrapolated the turnover, discovered in the incriminating material, to the entire period of assessment and such an extrapolation is not permissible, in the absence of any further material, which supports such an extrapolation. This contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of Section 4 (9) (c) of the Act, as minimum turnover of Rs. 1.5 crores per year was not available. 11. The turnovers, as calculated by the assessing officer, of the petitioner were a liquor sale turnover of Rs. 3,54,29,413/- and food sale turnover Rs. 1,02,20,407/- for the relevant assessment period July, 2014 to October, 2015. 12. Section 4 (9) of the Act sets out the rate of tax payable on sale or supply of goods, being food or any other article for human consumption or drink, served in hotels or restaurants, other eating houses or anywhere. Sections 4 (9) (a) and (b) deal with sale of food for hotels. Section 4 (9) (c) deals with sale or supply of food not falling under Section 4 (9) (a) or (b). This clause would be applicable whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the present case, the turnover of Rs. 4.54 crores, being the turnover relating to sale of alcohol and the turnover relating to sale of food has been taxed. The sale of alcohol, in the State of A.P., under the A.P. VAT Act, was to be taxed under Schedule VI 'at the point of first sale in the State'. This sale would be the sale between M/s. Andhra Pradesh Beverages Corporation Limited and the petitioner. The subsequent sale of liquor by the petitioner to his customers would not be exigible to tax. In fact, Explanation-II to the definition of 'taxable turnover' stipulates that the sale prices relating to second and subsequent sale of goods, enumerated in Schedule VI, shall not form part of 'taxable turnover'. This would mean that the entire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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