TaxTMI 
TaxTMI 
TaxTMI 
1995 (10) TMI 210
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....over of Rs. 34,86,710 relating to the first sales of general engineering goods, capacitors and laminations used in electrical fans, which were covered by declarations in form "G1" issued under section 5-B of the Act read with rule 30-A of the Andhra Pradesh General Sales Tax Rules. It is not in dispute that these goods were sold to the manufacturers of electrical fans, who in turn utilised them as components. The turnover was subjected to tax by the assessing authority at the rate of 4 per cent. The assessing authority did not levy additional tax or surcharge in respect of that particular turnover. The Commissioner of Commercial Taxes by the impugned order dated July 16, 1990, revised the assessment in the interest of revenue and imposed ad....
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.... section 5-A of the A.P. General Sales Tax Act as it then stood and it reads as follows: "5-A. Levy of additional tax on turnover.-Every dealer who is liable to pay tax under section 5 shall, in addition to the tax payable under that section, pay for each year a tax at the rate of one-half paise on every rupee of his turnover liable to tax, if his total turnover for that year is rupees three lakhs or more." Section 5-B of the Act, as the marginal heading to the section shows, provides for levy of concessional tax in respect of certain component parts used in the manufacture of specified finished products within the State. As observed by a Division Bench of this Court in State of Andhra Pradesh v. Buywell Corporation [1995] 98 STC 29 "the ....
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....harging section in regard to component parts of the description specified in that section, the liability to pay tax does not arise under section 5 of the Act. In other words, section 5-B of the Act shall not be mixed up with section 5 of the Act. If so, section 5-A is not attracted to the turnover under section 5-B at all. For this reason also, the view taken by the Commissioner of Commercial Taxes cannot be sustained. Then, we come to the question of surcharge. As far as this point is concerned, it is squarely covered by the Division Bench judgment aforementioned. In fact, the Commissioner of Commercial Taxes referred to an order of the Sales Tax Appellate Tribunal in T.A. No. 37 of 1984 and declined to follow the view taken by the Tribu....