TaxTMI 
TaxTMI 
1968 (6) TMI 52
X X X X Extracts X X X X
X X X X Extracts X X X X
....vember, 1966. Certain other 'C' Forms were filed and ultimately the tax levy was determined in accordance with the material placed before the officer, at 3 per cent on Rs. 2,23,240.97 covered by 'C' Forms, and at 10 per cent on a turnover of Rs. 24,347.81 not covered by 'C' Forms and a demand for a tax amounting to Rs. 9,132.03 according to the said rates was made on the petitioner. It is this demand that is challenged in this writ petition, on the ground that watery coconuts were at first totally exempt from the levy of tax under G. 0. Ms. No. 1091, Revenue, dated 10th June, 1957; subsequently, however, this exemption was varied and he became liable to tax at the first sale under G. 0. Ms. No. 608 dated 29th April, 1965, which came into force from 1st April, 1965. Subsequently, the A. P. General Sales Tax Act was amended on 23rd December, 1966, by Act No. 18 of 1966 under which item 10 was added to Schedule 11. As a consequence Explanation 1 of item 5 to Schedule III was also amended with the result that watery coconuts were liable to be taxed at the first purchase as and from the date of the amendment and from 1st August, 1963, to 31st March, 1965, at the last purchase. It is, th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he stage of first sale by the dealer in the State under the tax payable under sub-section (1) of section 5 of the State Act with effect from 1st April, 1965. But for this notification, watery coconuts would have been liable to multiple point, which sales after 1st April, 1965, became liable at the first sale. Thereafter the Act was amended, in so far as watery coconuts are concerned and the statement of objects furnishes the reasons for the amendment. It states: "By the Andhra Pradesh General Sales Tax (Amendment) Act, 1963, 'watery coconuts' became liable to tax at the rate of 2 paise in the rupee at each point of sale with effect from the 1st August, 1963. The coconut merchants of Andhra Pradesh represented to the Government that the levy of tax on watery coconuts at multi-point would adversely affect the trade and requested that a single point tax may be levied on watery coconuts at 2 paise in the rupee. As relief from the levy of multi-point tax was considered necessary by the Government pending amendments to the Act, instructions were issued to the assessing authorities to levy tax on watery coconuts at the point of last purchase in the State during the period from the 1st ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Schedule." Fourth Schedule. "9. Tender coconuts which are useful only for drinking purposes." From these amendments it is clear that sales of tender coconuts for drinking purposes are exempt and watery coconuts which have developed kernel are not exempt and are liable to tax at the point of first purchase as from the date of the amendment. Prior to that, we have already seen that between 1st August, 1963, and 31st March, 1965, by reason of item 10(a) the action of the taxing authorities in levying tax at the point of last purchase was given legislative sanction, but from 1st April, 1965, to the date of amendment, viz., 23rd December, 1966, the tax would be levied at the point of first sale in accordance with G.O. Ms. No. 608 dated 29th April, 1965, read with section 5. The learned Advocate for the petitioner, however, contends that as the notification has not been ratified by the Legislature while adding item 10, it is not valid. We are unable to accept this submission inas much as the addition of item 10 to Schedule 11 has prospective effect only in so far as subsequent transactions are concerned. In so far as past transactions are concerned, the Legislature was careful enou....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r called a tax or fee or by any other name, the tax payable under this Act on his turnover in so far as the turnover or any part thereof relates to the sale of such goods shall be nil or, as the case may be, shall be calculated at the lower rate. Explanation.-For the purposes of this sub-section a sale or purchase of goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State if under that law it is exempt only in specified circumstances or under specified conditions or in relation to which the tax is levied at specified stages or otherwise than with reference to the turnover of the goods." In terms of the Explanation to sub-section (2A) of section 8 the learned Advocate contends that the watery coconuts are not exempt under the notification imposing a levy at the first sale point. This cannot be disputed. But when this effect is sought to be applied to advance the further argument that under the Central Sales Tax Act the assessee cannot claim exemption at any point the controversy arises. Sri Suryanarayana Murthy contends that section 8 has nothing to do with the levy and collection of tax but only the rate at which tax is to be....