1996 (11) TMI 492

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...., 1956 (for short "the CST Act") by the assessing officer rejecting the contention of the assessee that under section 8(2-A) of the CST Act, it is entitled to exemption. The case of the assessee was that by virtue of G.O.Ms. No. 604, Revenue(S), dated April 9, 1981, when once exemption was granted in respect of the above turnovers under the Andhra Pradesh General Sales Tax Act, 1957 (for short, "the APGST Act") the assessing officer had no power to hold that the dealer was not entitled to exemption under section 8(2-A) of the CST Act. The assessing officer was of the opinion that G.O.Ms. No. 604, Revenue(S), dated April 9, 1981 is not of a general nature but a conditional one and, therefore, although under the APGST Act ....

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.... February 14, 1989 reads : "In exercise of the powers conferred by sub-section (5) of section 8 of the Central Sales Tax Act, 1956 (Central Act No. 74 of 1956), the Governor of Andhra Pradesh hereby exempts from payment of tax under the said Act on the sales of all varieties of certified and truthfully labelled seeds for agricultural purposes in the course of inter-State trade or commerce with effect from the 15th February, 1989." 5. The judgment of the Sales Tax Appellate Tribunal in Pinakini Seeds case (1988) 6 APSTJ 140 was reserved by a Division Bench of this Court in Pinakini Seeds v. State of Andhra Pradesh. Interpreting G.O.Ms. No. 604, the Division Bench held : "As stated above, 'certified and truthfully labe....

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....er than four per cent (whether called a tax or fee or by any other name, 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 any goods shall not be deemed to be except from tax generally under the sales tax law of the appropriate State if under that law the sale or purchase of such goods is exempt only in specified circumstances or under specified conditions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods." 8. Section 9 of the APGST Act confers power on State Government to notify exemption and reduction of tax or interest. A Division Bench of th....

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....hich was subsequently reversed in Commissioner of Sales Tax v. Pine Chemicals Ltd. (1995) 1 SCC 58, we should not accept the Pinakini Seeds case as a binding precedent, in our considered opinion does not merit acceptance. The question that fell for consideration in Pine Chemicals Ltd. case 1993 (67) ELT 25 (SC) which was subsequently reviewed and reserved in Pine Chemicals Ltd. case (1995) 1 SCC 58 related to identification of the exempted goods qua the goods or the dealer. Such a controversy has not arisen for resolution in the present case before us. We are, therefore, not inclined to discuss the other aspects of the aforesaid Pine Chemicals Ltd. case decided by the Supreme Court. What is uncontroversial is that the disputed turnovers wer....