The court affirmed that turnover tax is applicable on taxable turnover under Section 5-A of the APGST Act, establishing its legal basis and clarifying the interpretations from earlier judgments.

ORDER :

P.SAM KOSHY, J.

1. Heard Mr. S. R. R.Viswanath, learned counsel for the petitioner and Mr. Swaroop Oorilla, learned Special Government Pleader for State Tax in all the three Tax Revision Cases. Perused the record.

2. These are the three Tax Revision Cases filed by the same petitioner assailing the three orders passed by the learned STAT in T.A.No.204 of 2007 for the assessment year 1997-98 decided on 02.12.2010; T.A.No.740 of 2007 for the assessment year 1998-99 decided on 02.12.2010 and T.A.No.166 of 2007 for the assessment year 1999-2000 decided on 20.04.2010. Since, the substantial questions of law contended by the petitioner in all these three Tax Revision Cases been identical except for the different assessment years and three independent orders having been passed by the learned STAT, these three revision petitions stands decided by this common order.

3. The question of law to be considered was whether on the facts and law upholding of the levy of turnover tax under Section 5-A of APGST Act by the Tribunal is proper, legal and justified. Today, when the matter is taken up for hearing, learned Special Government Pleader for Revenue produced before this Bench a Division Bench decision of this Court directly dealing with the question of law involved in the instant Tax Revision Cases i.e., Special Appeal No.9 of 2004 which stood decided by the Division Bench of this Court on 30.04.2015. The Division Bench dealing with the statutory provision particularly Section 5-A of the APGST Act answered the question of law in favour of Revenue. While dealing with the question , the Division Bench held as under:

7. (a) There is no dispute with the facts, which are narrated supra. The AC (Int) who had initially made a provisional assessment had assessed the assessee for the year 1997-98 under the Act and had levied turnover tax under Section 5-A of the Act on the purchase turnover of milk vide his proceedings dated 26.06.1999. The aggrieved assessee had preferred an appeal before the ADC disputing that the turnover subjected to tax under Section 6-A is not liable to turnover tax under Section 5-A. The ADC had allowed the appeal of the assessee upholding the said contention of the assessee. The CTO had passed the consequential final assessment orders of the assessee following the orders of the ADC and had thus not levied turnover tax on the purchase turnover of milk. Finding the said orders of the ADC and the consequential final orders of the CTO prejudicial to the interests of the revenue of the State, the Commissioner having entertained a suo motu revision had issued a show cause notice and an opportunity of hearing and had finally confirmed the proposal in the show cause notice and had accordingly set aside the orders of the ADC and revised the final consequential assessment orders of the CTO for the year 1997-98 under the Act and had levied turnover tax at the rate of 1% on purchase turnover of milk i.e., Rs.15,84,00,140/-. Thus, the Commissioner had recorded a finding that turnover tax under Section 5-A is leviable and payable on taxable turnover under the charging Section 6A.

7. (b) We have given earnest consideration to the facts and the submissions. In view of the facts and the contentions, it is necessary to refer to infra, the provisions of law namely Sections 6A and 5A of the Act dealing respectively with levy of tax on turnover relating to purchases of certain goods and levy of turnover tax.

6A Levy of tax on turnover relating to purchase of certain goods:

Every dealer, who in the course of business:

i. purchases any goods (the sale or purchase of which is liable to tax under this Act) from a registered dealer in circumstances in which no tax is payable under Section 5 or under Section 6,