THE HON’BLE SRI JUSTICE P.SAM KOSHY AND THE HON’BLE SRI JUSTICE NARSING RAO NANDIKONDA TAX REVISION CASE NO.217 OF 2008

ORDER

(per Hon’ble Sri Justice Narsing Rao Nandikonda)

This Tax Revision Case is filed by the petitioner-Assessee under Section 22 (1) of the Andhra Pradesh General Sales Tax Act, 1957 (for short, ‘APGST Act’) aggrieved by the order, dated 08.10.2007, in T.A.No.142 of 2000 passed by the learned Sales Tax Appellate Tribunal, Andhra Pradesh, Hyderabad.

2. The brief facts of the case are that petitioner - M/s.

SOL Pharmaceuticals Limited at Dwarkapuri Colony, Hyderabad, is a public limited company incorporated under the Companies Act. It is dealing with manufacturing and sale of drugs in bulk quantity and its formulations. They are registered dealers on the rolls of the Commercial Tax Officer, Khairtabad, Hyderabad, before whom the petitioner-company filed its returns on monthly turnover. It is stated that during the Assessment Year 1990-1991, the assessee company disclosed the Gross turnover at Rs.22,71,79,150.00 claimed as exemption on total turnover of Rs.19,61,05,250.00 and accordingly Assessment order was passed by the Commercial Tax Officer through proceedings, dated 30.12.1993 on the following turnovers:

Gross turnover : Rs.22,71,79,150/-

Netturnover : Rs.3,10,73,900/-

3. It is stated that the Deputy Commissioner (CT), Punjagutta Division, Hyderabad, has proposed revision of assessment exercising power under Section 20 (2) of the APGST Act and issued a show-cause notice, dated 05.02.1997 to the petitioner on the ground that there are suppression of turnovers compared to Annual Report of the company. It is stated that the petitioner-company has become sick due to severe financial crisis faced by the company and the registered office of the company was under seizure by the Provident Fund authorities in the year 2001, where the entire records of the company are lying. Therefore, the petitioner could not file its objections within the stipulated time objecting the proposed revision by the Deputy Commissioner (CT). It is stated that vide order, dated 05.03.1998, the Deputy Commissioner (CT) has confirmed the proposed levy and accordingly levied tax on the additional turnover of Rs.6,81,37,930/- on the ground of alleged suppression of sale of drugs and medicines. It is also stated that the Deputy Commissioner has also levied tax on the turnover of Rs.50,69,180 alleging that the said turnover represents sale of Exim Scrips ignoring the fact that the said turnover represents incentives received by the petitioner from the Government under the Scheme called ‘Cash compensatory Scheme/ cash Incentive on exports, which was introduced for promoting exports from the State of A.P.

4. It is further stated that the Deputy Commissioner has also levied tax on a turnover of miscellaneous receipts Rs.1,55,870/- without verifying the nature of the receipts. As the said turnover does not represent sale of any goods exigible to tax under the provisions of the Act. It is submitted that in pursuance of the revision orders passed by the Deputy Commissioner (CT), the Commercial Tax Officer passed consequential order, dated 23.03.1998 arriving the net turnover as Rs.10,44,36,880/- which resulted in an additional demand of Rs.53,02,928/-.

5. It is averred that challenging the revisional order passed by the Deputy Commissioner (CT), dated 05.03.1998, the petitioner has filed an appeal before the learned Sales Tax Appellate Tribunal, which was dismissed vide impugned order, dated 08.10.2007 on the alleged ground that the petitioner could not produce necessary evidence before the revisional authority though it was referred to BIFR during the year 1998. Challenging the same, the present transfer revision case is filed.

6. Learned counsel for the petitioner contended that the revision made by the Deputy Commissioner (CT) is unwarranted without authority of law and jurisdiction and also in violation of principles of natural justice. That no part of