1988 (3) TMI 411

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....e above tax revision case, which are not in dispute, lie in a narrow compass: The petitioner is a registered dealer under the Andhra Pradesh General Sales Tax and Central Sales Tax Acts, trading in paddy and rice at Warrangal. For the assessment year 1978-79, the assessing authority subjected a turnover of Rs. 30,623.97 representing the inter-State sales of rice effected by the petitioner and not covered by declarations in form C, to tax of Rs. 573.88 under section 8(2)(a) of the Central Sales Tax Act. The Deputy Commissioner (Commercial Taxes), Warrangal, however, reopened the assessment in exercise of powers conferred upon him under section 20(2) of the Act, and subjected the said turnover to tax in a sum of Rs. 2,450. The assessing autho....

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....ler is 4 per cent. Sub-section (4) of section 8, however, makes it clear that the concessional rate of tax at 4 per cent can be claimed only on production of a declaration in form C covering the goods taxed. Where such a declaration is not furnished, sub-section (2) of section 8 enacts a penal rate of tax which, in respect of declared goods, shall be calculated at twice the rate applicable to the sale or purchase of goods inside the appropriate State and, in the case of goods other than declared goods, shall be calculated at the rate of 10 per cent or at the rate applicable to sale or purchase of such goods inside the appropriate State, whichever is higher. Paddy and rice are declared goods with effect from 7th September, 1976. Section 1....

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....irst purchase in the State, and rice is exigible to tax at the point of first sale in the State. Explanation III to entries 21 and 22 provides that, where tax has been levied under the Andhra Pradesh General Sales Tax Act in respect of sale or purchase inside the State of any paddy, the tax leviable on rice procured from out of that paddy shall be reduced by the amount of tax on such paddy. It is, therefore, clear that the proviso to section 6 of the Andhra Pradesh General Sales Tax Act read with Explanation III to entries 21 and 22 of the Third Schedule to the Act, conforms to the mandate contained in section 15(c) of the Central Sales Tax Act. Admittedly, the turnover which is the subject-matter of this tax revision case represents sales ....