Purchase tax exemption for dressed chicken applies where the underlying sale transaction is already exempt under the Act.

Purchase tax under section 6-A of the Andhra Pradesh General Sales Tax Act, 1957 could not be levied on dressed chicken where the same sale transaction was covered by the exemption granted under G.O. Ms. No. 60 dated 20.01.1989. The exemption order, issued under section 9(1), exempted sales of dressed chicken other than canned, preserved or dehydrated from tax under the Act. Because the taxed purchase was the same transaction as the exempt sale in the vendors' hands, the dealers could not again be subjected to purchase tax on that transaction.

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Issues: Whether purchase tax under section 6-A of the Andhra Pradesh General Sales Tax Act, 1957 was leviable on the purchase of dressed chicken despite the exemption granted by G.O. Ms. No. 60 dated 20.01.1989.

Analysis: The exemption order was issued in exercise of the power under section 9(1) of the Andhra Pradesh General Sales Tax Act, 1957 and exempted from tax payable under the Act the sales of dressed chicken other than canned, preserved or dehydrated. The transaction taxed in the hands of the purchasers was the same sale transaction in the hands of their vendors. Since the notification exempted the sale of dressed chicken from tax under the Act, the same transaction could not be subjected to purchase tax under section 6-A in the hands of the dealers.

Conclusion: Purchase tax under section 6-A was not leviable on the purchase of dressed chicken covered by the exemption order.

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