1992 (9) TMI 327 - HC - VAT and Sales Tax

Court affirms classification of 'mineral mixture' as 'poultry feed' for taxation under Sales Tax Act

State of Andhra Pradesh Versus JK. & Company

The court upheld the Sales Tax Appellate Tribunal's decision to classify 'mineral mixture' as 'poultry feed' for taxation under entry 80 of the A.P. ... - Issues:Interpretation of whether 'mineral mixture' qualifies as 'poultry feed' under entry 80 of the A.P. General Sales Tax Act, 1957.Analysis:The case involved determining whether 'mineral mixture' should be classified as 'poultry feed' under entry 80 of the A.P. General Sales Tax Act, 1957. The assessee argued that the mineral mixture, used as an ingredient in poultry feed, should be considered poultry feed for taxation purposes. The assessing authority, however, taxed the mineral mixture as general goods. The Sales Tax Appellate Tribunal, relying on a judgment of the Gujarat High Court, allowed the appeal and directed that the turnover related to the mineral mixture be taxed at 1 per cent under entry 80. The correctness of this decision was challenged in the Tax Revision Case (T.R.C.).The Government Pleader contended that since mineral mixture could be used for purposes other than poultry feed, it should be taxed as general goods. However, the court rejected this argument, noting that there was no finding by any authority that the mineral mixture was being used for any purpose other than poultry feed. Referring to the Gujarat High Court judgment, the court highlighted that essential nutrients added to cattle feed and poultry feed were considered part of the feed itself for tax purposes.In a previous case, the Andhra Pradesh High Court had held that mineral mixture should be taxed as poultry feed under entry 80 unless it could be shown to be used for other purposes. Since no evidence was presented to suggest alternative uses of the mineral mixture, the court upheld the Tribunal's decision to tax it as poultry feed. The court emphasized that without evidence of alternative uses, the mineral mixture should be classified as poultry feed under the relevant entry.Ultimately, the court dismissed the Tax Revision Case, affirming the Tribunal's decision to tax the mineral mixture as poultry feed under entry 80 of the A.P. General Sales Tax Act, 1957. The court's decision was based on the lack of evidence supporting the contention that the mineral mixture could be used for purposes other than mixing with poultry feed.