The classification of oats supplied for horses as cattle feed was upheld as horses are legally considered cattle, and the respondent's activities were deemed charitable, exempting them from dealer taxation.

ORDER:

P.Sam Koshy, J.

Heard Mr. Swaroop Oorilla, learned Special Standing Counsel for Commercial Tax appearing on behalf of the petitioner - State; and Mr. S.Ravi, learned Senior Counsel appearing on behalf of Mr. CH.Pushyam Kiran, learned counsel for the respondent.

2. These are six Tax Revision Cases filed by the State under Section 22(1) read with Rule 10 of the Andhra Pradesh Goods and Service Tax Rules (hereinafter referred to as ‘APGST Rules’) under the Andhra Pradesh Goods and Service Tax Act, 1957 (hereinafter referred to as ‘APGST Act’) challenging the orders passed by the Sales Tax Appellate Tribunal, Andhra Pradesh, Hyderabad (hereinafter referred to as the ‘STAT’). The details of each of the case; like the Tax Revision Case number, assessment year, and the Tax Appeal number before the STAT along with date on which it was decided is reproduced below:

3. In all these since cases the point of contention is same, they have been taken up and heard together and are decided by this Common Order.

4. For convenience, the facts in Tax Revision Case No.105 of 2010 are discussed hereunder.

5. The facts of the case are that the respondent M/s. Hyderabad Race Club is an organization engaged in horse racing activities. During the assessment years in question, the Commercial Tax Officer examined various transactions undertaken by the club and determined that it qualified as a "dealer" under Section 2(e) of the APGST Act. The assessing authority found that the club was involved in multiple commercial activities including the sale of food items to outsiders (Rs.1,90,975/-), sale of oats to horse trainers (purchase value Rs.52,30,405/-), sale of gunnies (Rs.51,473/-), sale of tender forms (Rs.4,930/-), and sale of scrap materials (Rs.1,29,100/-). Additionally, tax was levied under Section 6A of the APGST Act amounting to Rs.2,66,302/- on works contract turnover. The respondent challenged the tax assessment arguing that as a club it should not be treated as a dealer and that several of these transactions should either be exempted or taxed at different rates.

6. According to the respondent, the classification and taxation of oats formed the largest component of the contested turnover. The assessing authority had classified oats as "General Goods" under the seventh schedule and levied tax on the purchase value of Rs.52,30,405/-. The respondent stated that oats should be classified as "cattle feed" under Entry 80 of the First Schedule of the APGST Act, which would attract a lower tax rate of 4% (w.e.f. 01.04.1995) or 1% (up to 01.04.1995). The respondent submitted that the oats purchased were wild oats and not fit for human consumption and were exclusively used for feeding horses. Furthermore, the respondent maintained that even if taxable, the levy should be on the sale value of Rs.10,66,914/- (at which the oats were sold at subsidized rates to trainers) rather than o