TaxTMI 
TaxTMI 
2008 (3) TMI 452
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....of 2002. Facts are taken from Civil Appeal No. 4491 of 2002, which is the main appeal. The relevant period is from November, 1994 to March, 1995 which falls in the assessment year 1994-95. The appellant deals in the sale of silver bars. It filed its return showing a turnover of Rs. 14,33,01,470 and paid sales tax at the rate of ½ per cent. The assessing authority accepted the said return and completed the assessment on November 27, 1995. Later, the assessing officer issued notice on August 17, 1996 proposing to reopen the assessment under section 14(4)(c) of the Andhra Pradesh General Sales Tax Act, 1957 (for short, "the Act") to bring the above turnover to tax at the rate of two per cent, apart from additional tax and surcharge, on the premise that G.O. Ms. No. 1092 and G.O. Ms. No. 252 reducing the rate of sales tax to ½ per cent were applicable only to gold bullion and the same were not applicable to silver bullion and specie. Questioning the said show cause notice, the appellant filed W.P. No. 21503 of 1996(1). The High Court dismissed the writ petition on the ground of alternate remedy of filing the objection and getting a decision from the authorities under th....
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....r mixed with copper, lead or any other kind of base metal." The relevant portion of G.O. Ms. No. 1092 Rev. (CT-II) dated October 31, 1994 is extracted hereunder: "NOTIFICATION-I In exercise of the powers conferred by sub-section (1) of section 9 of the Andhra Pradesh General Sales Tax Act, 1957 (Act VI of 1957), the Governor of Andhra Pradesh hereby directs: (a) that the tax leviable under the said Act on the sale of bullion and specie (gold) be reduced from two per cent to ½ per cent, all included (net ½ per cent); (b) that the tax leviable under the said Act on the sale of jewellery, including those set with precious stones be reduced to two per cent; (c) that the tax leviable under the said Act on the sale of precious stones loose, other than pearls, be reduced to two per cent. This notification shall come into force with immediate effect." (Emphasis supplied) The subsequent notification issued under section 9(1) dated May 19, 1995 which came into force with effect from April 1, 1995 and the notification subsequent thereto in G.O. Ms. No. 625 dated July 31, 1996 superseding the earlier notification omitting the expression "gold" (G.O. Ms. Nos. 1092 and 252 ....
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....eted at the end to indicate that it is meant to be applicable to gold only. It was also submitted that Commissioner of Commercial Taxes, Government of Andhra Pradesh by its order dated March 22, 1995 passed on a request made by the Twin Cities Jewellers Association clarified that the reduced rate of tax is applicable only to gold bullion and specie. As such the contention of the appellant that it is also applicable to silver bullion is unjustified and untenable. The learned counsel for the parties have been heard at length. Bullion and specie are taxable at the rate of two per cent with effect from July 8, 1983 under item 20 of the First Schedule to the Act. Same rate is applicable to the articles and jewellery mentioned under entry 21 made out of bullion and/or specie or both, excluding precious stones. Explanation I to the said Schedule defines "bullion" as pure gold or silver and includes gold or silver mixed with copper, lead or any other kind of base metal. The Government of Andhra Pradesh by issuing G.O. Ms. No. 1092 dated October 31, 1994 under section 9(1) of the Act reduced the net rate of sales tax to ½ per cent on sale of bullion and specie (gold). Andhra Prades....
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....he Shorter Oxford Dictionary gives the meaning of 'bullion' as 'gold or silver in the lump; also applied to coined or manufactured gold or silver considered as raw material'. So also in Jowitt's Dictionary of English Law and Wharton's Law Lexicon we find that the following meaning is given for the word 'bullion': 'uncoined gold and silver in the mass. These metals are called so, either when melted from the native ore and not perfectly refined, or where they are perfectly refined, but melted down into bars or ingots, or into any unwrought body, of any degree of fineness'. It would, therefore, be seen that ornaments and other articles of gold cannot be regarded as 'bullion' because, even if old and antiquated, they are not raw or unwrought gold or gold in the mass, but they represent manufactured or finished products of gold. Nor do they come within the meaning of the expression 'specie'. The word 'specie' has a recognised meaning and according to Webster's New World Dictionary, it means 'coin, as distinguished from paper money'. The Law Dictionaries also give the same meaning. Wharton's Law Lexicon and Jowitt's Dictionary of English Law state the meaning of 'specie' as 'metallic mon....