THE STATE OF A.P. Vs. M/S UNIVERSAL CONVERTERS PRIVATE LIMITED CHITTOOR

JUDGEMENT

(1.) Heard learned Government Pleader for Commercial Tax and Sri P. Karthik Ramana, learned counsel for the petitioner.

(2.) The appellant is the State and the respondent is a dealer which was registered under A.P.G.S.T. Act. The appellant is the assessees on the rolls of Commercial Tax Department. The respondent engaged in the business of packing material. The Assessing Authority assessed the respondent under A.P.G.S.T. Act for the year 1999-2000 by order, dtd. 21/12/2001. Subsequently, the respondent submitted an application requesting the Assessing Authority to give exemption on the sale made to Tirumala Tirupati Devasthanams (TTD), Tirupati, on a turnover of Rs.14,84,667.00 and requested to revise the assessment order under Rule 50(4) of the APGST Rules. The Assessing Authority by following the directions issued by the State Government in G.O.Rt.No.162, dtd. 3/4/2002 gave exemptions on the sales of packing materials to TTD and passed reassessment order on 9/7/2002. The Revisional Authority i.e., DC (CT), Chittoor Division, revised the reassessment order of the Assessing Authority, dtd. 9/7/2002. The Revisional Authority passed order on 7/7/2006 holding that there is no evidence to show that the respondent had not charged the sales tax from TTD and in the absence of non-charge of tax by the respondent from the TTD, the respondent cannot claim exemption and had withdrawn the exemption granted on the entire turnover. The Revisional Authority also held that the Assessing Authority applied lower rate of tax of 4% on the first sales of laminated paper treating them as packing material, but the laminated paper with printed material fall under Entry-I of Seventh Schedule to APGST Act and is liable to tax @ 10% up to December, 1999 and @ 12% from January, 2000 to March, 2000. The order of the Revisional Authority, dtd. 7/7/2006 was served on the respondent on 23/8/2006.

(3.) Aggrieved by the order, dtd. 7/7/2006 of the Revisional Authority, the respondent approached the Sales Tax Appellate Tribunal by filing an appeal in T.A.No.638 of 2006, the said appeal was allowed by Sales Tax Appellate Tribunal, Hyderabad by an order, dtd. 13/6/2007 in favour of the respondent. Aggrieved by the said order, the State filed the present Revision before this Court.