GOVERNMENT OFANDHRA PRADESH
A B S T R A C T
ANDHRA PRADESH GENERAL SALES TAX ACT,1957 ¿ Levy of Sales Tax on the sale of Cast Iron Pipes, Fittings and Covers,in the light of Supreme Court¿s Judgment in the case of Bengal IronCorporation ¿ Clarification ¿Issued.
G.O.Ms.No. 663 Dated: 10 -10 ¿2001.
Read the following:
From the Indian Foundry Association,Calcutta Representation Dated 3-9-2001.
From the Commissioner of CommercialTaxes, Hyderabad, Lr.No.AI (4)/927/99dated 12-09-2001.
O R D E R: -
The Commissioner of Commercial Taxes,Hyderabad has reported that in G.O Ms. No.383 Revenue Department dated 17-4-1985it has been clarified that the Cast Iron Castings are declared goods fallingunder Item 2 of the Third Schedule to the Andhra Pradesh General Sales Tax Act,1957 and that he had also clarified time and again that the Cast Iron Pipes,Specials are declared goods taxable under Item 2 of the Third Schedule to theAndhra Pradesh General Sales Tax Act, 1957. Accordingly, the dealers were paying tax at the rate of 4% only, bytreating these goods as declared goods. Subsequently,the Supreme Court of India in its judgment dated 27-4-1993 in C.A No.4474 of1992 filed by Bengal Iron Corporation, held that ¿Cast Iron¿ as appearing inSection 14 (iv) (i) of the central Sales Tax Act 1956 is different from ¿CastIron Castings¿. The Supreme Courthas further held that Cast Iron Castings like Man-hole Covers, Bends, Cast IronPipes and Fitting are not declared goods. Pursuantto the said decision, delivered on 27-4-1973, the assessing authorities andrevisional authorities took steps to assess these goods by levying tax at therate applicable to general goods which was exceeding 4%.
2. The Indian Foundry Association, Calcutta in the letter first read abovehas represented that trade and industry were guided by the orders of the AndhraPradesh Government and collected sales tax @ 4% only treating these goods asdeclared goods and that none of the dealers collected tax which is exceeding 4%as the Commissioner of Commercial Taxes, Hyderabad repeatedly clarified that itwas only 4% and hence it will be great injustice to them if they are penalisedfor no fault of theirs. Theyhave also represented that due to all these reasons some of the StateGovernments like Maharasthra, Tamilnadu, West Bengal and Delhi etc issued ordersnot to reopen and demand the additional sales tax liability during the periodprior to the date of said judgment of the Supreme Court. The Association has therefore requested to exempt from payment of tax inrespect of all such cases prior to 27-4-1993 i.e., the date of the judgment ofthe Supreme Court as has been done by other State Governments.
3. The Commissioner of CommercialTaxes, Hyderabad has recommended that it is a genuine problem faced by thedealers who have not collected the additional liability of tax and thereforerequested the Government to order exemption from payment of tax in respect ofall such cases upto 26-4-1993 or to clarify in the alternative that the saidjudgment of the Supreme Court shall be effective from 27-4-1993.
4. The Government after careful examination of the matter, hereby directthat the tax leviable on the sales of Caste Iron Pipes, Fittings and Coversduring the period prior to the date of judgment of the Supreme Court, shall be @4% only and that the orders of the Supreme Court of India will be effective from27-04-1993, only.
The Commissioner of Commercial Taxes, Hyderabad is requested to takenecessary action accordingly.
6. A copy of this order is available on the Internet and can be accessed atthe address ¿ http://apts.gov.in/apgos.
(BY ORDER AND INTHE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
SPECIAL CHIEF SECRETARYTO GOVERNMENT
The Commissioner of Commercial Taxes,Hyderabad.
The Accountant General, A.P.Hyderabad.
The Secretary, Sales Tax AppellateTribunal, Hyderabad.
The State Representative before theSales Tax Appellate Tribunal, Hyderabad. .
The Director General, Genl. Admn. (V& E), Dept. BRKR.Buildings, Hyderabad.
Copy to: -
The Spl.Secretary to Chief Minister.
The P.S. to Minister for CommercialTaxes.
The Finance & Planning (FWExp.Rev) Department.
//Forwarded by order//