2011 (12) TMI 459

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....-oiled cake and other products. Inter alia, he also supplies the goods to the Tirumala Tirupathi Devasthanam, Tirupathi (TTD), which is a statutory religious endowment, and M/s. Girijan Primary Corporation Marketing Society, Visakhapatnam (hereafter referred to as, "the Girijan Society"). For the assessment years 1999-2000 and 2000-01 the Commercial Tax Officer, Nandigama (CTO), completed assessment. The petitioner claimed exemption of the turnover to the extent of sales made to TTD and Girijan Society. However, the assessment officer did not allow the exemption. Aggrieved thereby, the petitioner preferred appeals before the Appellate Deputy Commissioner, Vijayawada (ADC). The same were dismissed. The petitioner filed further appeals initia....

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.... January 11, 1991. In exercise of the powers conferred by sub-section (1) of section 9 of the Andhra Pradesh General Sales Tax Act, 1957 (Andhra Pradesh Act No. VI of 1957), the Governor of Andhra Pradesh hereby exempts the tax payable under the said Act on the sales or purchases as the case may be of minor forest produce, agricultural produce, commodities and daily requirements made by Girijan Co-operative Corporation Ltd., Visakhapatnam. (Published in A.P. Gazette, Extraordinary No. 19, Part I, January 17, 1991) A plain reading of the two Government Orders would reveal that TTD as well as Girijan Society are exempted from payment of tax under the Act on the sales and purchases of goods made by them. When they are exempted from pa....

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....payment of the tax. This submission found favour with the Supreme Court. The relevant observations are as follows (page 559 in 6 VST): ". . . it is evident that collection and levy are distinct and that collection is not an essential facet of levy. It is true that collection of a tax may sometimes be indicative of a lawful levy of tax, but in our opinion it does not logically follow that absence of collection means an absence of liability. We are also of the opinion that the reliance on the Town Municipal Committee v Ramchandra Vasudeo Chimote [1964] 53 ITR 444 (SC); AIR 1964 SC 1166; [1964] 6 SCR 947 by the Division Bench which involved an interpretation of 'continued to be levied' and 'to be applied to the same purposes&#39....