2008 (7) TMI 891

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.... 10 of the Third Schedule to the Andhra Pradesh General Sales Tax Act, 1957? Cotton yarn sold by the petitioner is admittedly, blended with cellulosic fibre content ranging from 10 to 14 per cent in weight. It is the case of the petitioner both before the Tribunal, and before this court, that the mere fact that cotton yarn was blended with non-cellulosic fibre content ranging from 10 to 14 per cent would not result in its ceasing to be cotton yarn, that the said product continued to remain cotton yarn and was liable to be taxed only at four per cent under entry 10 of the Third Schedule to the APGST Act, 1957. Sri S. Ravi, learned counsel for the revision petitioner, would contend that under the Cotton Textile Control Order, 1976 no manufa....

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....y 10 of the Third Schedule and that the vires of these entries cannot be examined in revision proceedings as the scope of revision by this court, under section 22 of the APGST Act, was limited only to a determination of questions of law. In Arunachalaeswara Mills [1991] 81 STC 137, the Division Bench of the Madras High Court observed that a mere declaration that cotton yarn, blended with non-cellulosic fibre not exceeding per cent, should be treated as non-declared goods under entry 18-A of the Tamil Nadu General Sales Tax Act, 1959 was of no consequence unless the Parliament appropriately amended section 14(ii-b) of the Central Sales Tax Act. It was further held that though blended yarn was brought under entry 18-A of the First Schedule t....

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....tive of the quantum of his turnover in such goods and the tax shall be assessed, levied and collected in such manner as may be prescribed. The Third Schedule to the APGST Act deals with declared goods in respect of which only single-point tax is leviable under section 6 of the Act. Under entry 10 thereof, the point of levy of tax on cotton yarn is at the point of first sale in the State and the rate of tax is four per cent. The State Legislature has made a distinction between cotton yarn under entry 10 of the Third Schedule, and blended cotton yarn with non-cellulosic fibre content not exceeding per cent by weight under entry 165 of the First Schedule. While the former is to be taxed at four per cent, the latter is to be taxed at eight per ....