1999 (6) TMI 472 - HC - VAT and Sales Tax

Novopan Plywood Panel Doors Taxable at 9% under AP Sales Tax Act

The High Court of Andhra Pradesh held that panel doors made from Novopan plywood are taxable at 9 per cent under entry 114 of the Andhra Pradesh General ... Classification of goods for sales tax - taxability under entry 114 of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957 - plywood in any other form - treatment of plywood-based manufactured articlesClassification of goods for sales tax - taxability under entry 114 of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957 - plywood in any other form - Turnover from sale of panel (Novopan) doors is taxable under entry 114 of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957, and not as general goods. - HELD THAT: - The Court examined entry 114, which covers plywood 'in any other form.' It was not disputed that the Novopan doors were manufactured from Novopan plywood using panels. Given that the doors are produced out of the specified plywood, they fall within the scope of plywood 'in any other form' as contemplated by entry 114. The Appellate Tribunal's conclusion that the panel doors did not fall under entry 114 was therefore erroneous. On this basis the Court set aside the Tribunal's order, restored the Deputy Commissioner (CT)'s assessment, and directed the assessing officer to treat the turnover relating to the panel doors as chargeable under entry 114, attracting the rate applicable thereto.Order of the Appellate Tribunal set aside; Deputy Commissioner (CT)'s order restored and assessment to be modified to levy tax on panel doors under entry 114 at the applicable rate.Final Conclusion: The tax revision is allowed: panel doors manufactured from Novopan plywood are taxable under entry 114 of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957; the Tribunal's order is set aside and the assessing officer directed to modify the assessment accordingly. The High Court of Andhra Pradesh decided that panel doors made from Novopan plywood fall under entry 114 of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957, and should be taxed at 9 per cent. The Appellate Tribunal's decision was set aside, and the assessing officer was directed to modify the assessment accordingly. The tax revision case was allowed, and the petition was granted.