ORDER:

The present Revision came to be filed assailing the Order, dated 15.04.2002, against the proceedings of the Appellate Deputy Commissioner (C.T.), Vijayawada in T.A.Nos.684, 685, 686, 687 and 688 of 2001, on the file of the Sales Tax Appellate Tribunal, Andhra Pradesh, Hyderabad. For better appreciation, the parties hereinafter be referred to as Dealer and Assessing Officer.

2. The Assessing Officer has passed an Order dated 19.07.2000 for the Assessment Year 1998-1999 (CST) directing the dealer to pay Sales Tax @ 12% per annum, assessing the following turnover for the year 1998 – 1999 under C.S.T. Act. The same is as under :-

Total turnover Rs.6,27,08,452.00

Exempted turnover Rs. 84,50,491.00

Net Turnover Rs.5,42,57,961.00

The net turnover of Rs.5,42,57,961/- is taxable at 12%

Tax due Rs. 65,10,955.00

Tax paid Rs. 10,93,654.00

Balance (-) Rs. 54,17,000.00

3. The Dealer was called upon by a show-cause notice to file “C” Declaration Forms for the turnover of Rs.5,42,57,961.00 to get concessional rate of Tax @ 4%, for sales recorded on computer paper Nepal for Rs.47,95,311.00 and Export sales of computer paper for Rs.36,55,180.00 within ten days from the date of receipt of the notice otherwise, the entire turnover would be subjected to tax at 12%.

4. The main contention of the dealer is that the computer stationery would fall under electronic goods and therefore the interstate sales of computer paper, effected by them is taxable at the concessional rate of 2% only in view of G.O.Ms.No.521 Rev. (CT.II), dated 20.07.1988 and G.O.Ms.No.140 Rev. C.T. II dated 10.03.2000. According to which, Inter-State sales of electronic goods up to 31.12.1999 is taxable @ 2% irrespective of filing of 'C' Declaration Forms and Memo No.50959 dated 11.08.1998 has no application to their case. Relying upon the judgment in Andhra Pradesh Computer Stationery Manufacturers Vs State of Andhra Pradesh, (1998) 26 STJ-184, it is urged that the Government has no power to issue proceedings clarifying rate of tax vide Memo dated 11.08.1998, as held by the Andhra Pradesh High Court in the case of B. Arun Kumar Trading Private Limited Vs. C.T.O., 27 APGSTJ-352. With the above said objections, the Dealer requested to drop proposed assessment.

5. The Assessing Officer has directed to pay tax as indicated above, stating that G.Os relied upon by the Dealer have to be considered only, when the computer stationery falls within the meaning of electronic goods. Since, the same is treated as falling within the meaning of 'paper', the G.Os relied on by the dealer need not be considered, more so, as the dealer has filed details for export sales of computer paper and sales of computer paper to Nepal, the details of which, are found in order and accordingly exemption is allowed on a turnover of Rs.84,50,491/-. The Assessing Officer directed the assessee to pay the tax @ 12%.

6. Aggrieved by the same, the Dealer has preferred an appeal before the Appellate Authority i.e. Deputy Commissioner, (C.T.) Vijayawada. The Appellate Authority after considering the material on record held that “when a particular commodity is classified by the Government to fall under a specified entry in the schedules, it cannot be treated differently under APGST Act and under CST Act. Even though G.O.Ms.No.521 Rev. Dt.20.07.98 issued under CST Act contemplates reduction in rate of tax upto 31-12-99, there being no change in the reduced rate of tax under CST Act, it cannot give protection to the commodity classified as other than Electronic Goods” and thus held that the computer stationery falls under Entry 19 of the APGST Act, meaning thereby that all kinds of paper do not come under the purview of Entry 38 of Schedule-I and accordingly held as under:- “the assessing officer has rightly held that the rate of tax of the computer stationery in accordance with the clarification issued by the Government” and rejected the contention of the Dealer that the sale of finished product is to be considered as a works con