The State Of A.P. vs. M/S. Sri Venkata Sai Ram Traders
Held
The Court held that G.O.Ms.No.415 dated 17.05.1997, specifically paragraph 3, explicitly provides for the reduction of tax paid on oil cakes from the tax leviable on the sale of de-oiled cakes or vegetable oil. The proviso to paragraph 3 further clarifies that the total amount of tax to be reduced is limited to the tax paid on oil seeds, non-refined oil, or oil cakes. A plain reading of the G.O. indicates it applies to de-oiled cakes, granting them the same set-off benefit as refined oil. Therefore, the STAT's interpretation was deemed correct. The Court found no reason to interfere with the impugned order. The revision was dismissed.
Facts
The State of Andhra Pradesh filed a tax revision case challenging an order by the Sales Tax Appellate Tribunal (STAT). The respondent, M/s. Sri Venkata Sai Ram Traders, deals in groundnuts and by-products. The Commercial Tax Officer passed a final assessment order for the assessment year 1998-99, determining a taxable turnover of Rs. 7,72,09,745.00. The respondent disputed a set-off of tax amounting to Rs. 45,749/-, which was dismissed by the Appellate Deputy Commissioner. The STAT, however, allowed the appeal, holding that tax paid on oil seeds could be deducted from the tax payable on the sale of non-refined oil and de-oiled cakes, subject to limitations.
Key Issues
1. Whether G.O.Ms.No.415 dated 17.05.1997 is applicable for claiming a set-off benefit on de-oiled cakes? The petitioner argued that the G.O. pertains only to the sale of oil and not de-oiled cakes, thus precluding set-off claims for the latter. 2. Whether the STAT correctly interpreted G.O.Ms.No.415 dated 17.05.1997 while calculating the set-off? The petitioner contended that the STAT's interpretation was erroneous. The respondent, through the STAT's order, argued that the G.O. clearly provides for the deduction of tax paid on oil seeds from the tax leviable on the sale of non-refined oil and oil cakes, including de-oiled cakes, with a proviso limiting the deduction to the tax already paid.
Sections Cited
Section 9, Section 5, Entry 24-A, Entry 24B, Entry 29
AI-generated summary — verify with the full judgment below
HON’BLE SRI JUSTICE RAVI NATH TILHARI AND HON’BLE SRI JUSTICE HARINATH. N
T.R.E.V.C. No.203 OF 2009
2024
The State of A.P., rep. by the State Representative before STAT, Hyderabad
……Petitioner And:
M/s. Sri Venkata Sai Ram Traders, Kurnool ….Respondent.
Counsel for the petitioner : Sri Shreyas Reddy
Counsel for the respondent : Sri S. Dwarakanath.
2
THE HON’BLE SRI JUSTICE RAVI NATH TILHARI
AND THE HON’BLE SRI JUSTICE HARINATH. N
T.R.E.V.C. No.203 OF 2009
JUDGMENT:- (per Hon‟ble Sri Justice Ravi Nath Tilhari)
Heard Sri Shreyas Reddy, learned Government Pleader for Commercial Tax appearing for the petitioner.
This tax revision case has been filed by the State of A.P challenging the order dated 05.03.2009, passed by the Sales Tax Appellate Tribunal, Andhra Pradesh in T.A.No.1453 of 2004. 3. The respondent M/s. Sri Venkata Sai Ram Traders, Kunool is on the rolls of Commercial Tax-I, Kunool and is dealers in ground nuts and its by products.
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