Andhra Pradesh General Sales Tax Act, 1957

Mis. Shakthi Seeds Pvt. Ltd., a registered dealer in agricultural seeds, claimed exemption from sales tax on certain seed varieties by invoking G.O.Ms. No. 604 (1991) and G.O.Ms. No. 129 (1989), asserting that the seeds were either certified or truthfully labelled. The Deputy Commissioner, after finding the seeds were …

Mohan Breweries purchased empty bottles from unregistered dealers for bottling its beer and IMFL. The revenue argued that the purchase turnover of these bottles was liable to purchase tax under Section 7-A of the Tamil Nadu General Sales Tax Act, 1959, while the assessee claimed exemption based on earlier Clarification…

The Government of Andhra Pradesh issued a demand notice under Section 5 of the Andhra Pradesh General Sales Tax Act, 1957 for tax on the turnover of an auction sale of jewellery held on 19‑08‑1987 by Corporation Bank, invoking Explanation IV to Section 2(1)(e) inserted by Act No. 27 of 1996. The Bank challenged the not…

Bengal Iron Corporation, a manufacturer of cast‑iron pipes, man‑hole covers and similar items, claimed that its products fell under Item 2(i) of the Third Schedule of the Andhra Pradesh General Sales Tax Act, 1957, and were therefore liable to a single point tax of 4% only. The Commercial Tax Officer levied tax at the …

Modern Proteins Ltd., a dealer under the Andhra Pradesh General Sales Tax Act, dealt in groundnut products including deoiled cake and groundnut protein flour. For the 1977-78 assessment year, the Central Tax Officer taxed the flour at 4% under the Central Sales Tax Act, but the Assistant Commissioner re‑classified it a…

The Assistant Commissioner of Commercial Taxes, GOONDLA VENKATESWARLU, inspected a business premises and later faced a criminal complaint alleging forcible seizure of books and extortion under IPC sections 448, 380, 384 and 506. The complaint was challenged on the ground that Section 37 of the Andhra Pradesh General Sa…

The Andhra Pradesh government issued circulars interpreting Entry 24‑B of the Andhra Pradesh General Sales Tax Act, 1957 to limit the concessional 2% tax rate on refined vegetable oils only to those obtained from non‑refined oils that had already been taxed under Entry 24‑A, imposing a 10% rate otherwise. The High Cour…

The Supreme Court examined the constitutional validity of purchase‑tax provisions in three State sales‑tax statutes: Section 15B of the Gujarat Sales Tax Act, Section 3‑AAAA of the Uttar Pradesh Sales Tax Act, and Section 6‑A of the Andhra Pradesh General Sales Tax Act. The petitioners argued that these provisions amou…

Nandanam Construction Co., a builder of flats and houses, purchased raw materials such as sand, bricks and granite from unregistered dealers. The Assistant Commissioner of Commercial Taxes issued notices requiring the company to disclose details of these purchases under the Andhra Pradesh General Sales Tax Act, 1957. T…

Lohara Steel Industries Ltd., a dealer in iron and steel, bought scrap and ingots in Andhra Pradesh, sent them to its re‑rolling mill in Karnataka, and sold the re‑rolled products back in Andhra Pradesh. Under the Andhra Pradesh General Sales Tax Act, 1957, an exemption notification (G.O. Ms No 88, 1977) exempted such …

Hindustan Shipyard Ltd., a public sector shipbuilder, challenged the assessment of sales tax on contracts for building ships, arguing that the contracts were works contracts under Section 2(t) of the Andhra Pradesh General Sales Tax Act, 1957. The State of Andhra Pradesh contended that the contracts were sales of goods…

The Supreme Court considered two sets of appeals. In Union Carbide India Ltd. v. State of Andhra Pradesh it examined whether dry‑cell batteries and arc‑carbons were taxable under the higher‑rate entries 3 or 4 of the Andhra Pradesh General Sales Tax Act, 1957 or under the lower‑rate residuary entry 38. The Court held t…

A. NAGARAJU BROS., a dealer in VIP suit cases made of plastic and fitted with steel bands, claimed that these suit cases were "plastic articles" under Entry 113 of Schedule I of the Andhra Pradesh General Sales Tax Act, 1957, and therefore liable to tax only at the first point of sale for the assessment year 1981‑82. T…

The Supreme Court examined whether credit notes issued by liquor manufacturers to their distributors should be included in the distributors' taxable turnover under the Andhra Pradesh General Sales Tax Act, 1957. The distributors argued that the manufacturers had already paid tax on the full sale price and that the cred…

Associated Tanners, a tannery in Vizianagram, purchased raw hides, tanned them and sold the tanned hides in inter‑State trade. The Andhra Pradesh General Sales Tax Act, 1957 (item 9(b) of Schedule III) levied tax on the sale of tanned hides when purchased by a manufacturer, and the Central Sales Tax Act, 1956 also impo…

Vasavadatta Cements, a cement manufacturer, challenged the constitutional validity of Section 5(3‑D) of the Karnataka Sales Tax Act, 1957, which made packing material (gunny/plastic bags) taxable. The Karnataka High Court dismissed the challenge, relying on Ranganatha Associates and the Supreme Court’s decision in Rajs…

McDowell & Company Ltd., a licensed liquor manufacturer in Hyderabad, paid sales tax on its turnover excluding the excise duty that buyers paid directly to the excise authorities. The Commercial Tax Officer issued a notice to include that excise duty in the company's turnover for sales tax purposes, relying on amendmen…

The State of Andhra Pradesh challenged the claim by Mis Kone Elevators (India) Ltd. that its contracts for supplying, installing and commissioning lifts were works‑contracts, allowing deductions of labour charges under Section 5G of the Andhra Pradesh General Sales Tax Act, 1957. The assessee argued that installation r…

The appellants, manufacturers and dealers of beer and cement, challenged sales‑tax assessments under the Andhra Pradesh General Sales Tax Act, 1957 on the basis that the turnover of packing material (bottles, cartons, gunny bags) had been taxed at the rate applicable to the goods themselves, invoking Section 6C which d…

Mis Gammon India Ltd., a construction company, was alleged to have falsely issued Form‑G and claimed concessional tax rates under the Andhra Pradesh General Sales Tax Act, 1957 (APGST). The Assistant Commissioner of Commercial Taxes issued show‑cause notices and, after hearing the appellant, confirmed additional tax an…

Royal Hatcheries Pvt. Ltd. and other hatcheries sell day‑old chicks to poultry farms. The Andhra Pradesh sales‑tax authorities treated the chicks as general goods and levied tax on the sale under Section 5(1) of the Andhra Pradesh General Sales Tax Act, 1957. The hatcheries contended that the chicks fell within clause …

The Commercial Tax Officer appealed against a Telangana High Court order that set aside attachment notices issued against Neeraja Pipes Pvt. Ltd. for alleged VAT arrears. The assessee claimed it never received copies of assessment orders for assessment years 2009‑10 and 2010‑11, arguing that without proper service unde…

Coastal Chemicals Ltd purchased natural gas from ONGC and used it as fuel in the manufacture of paper. The company claimed a concessional tax rate under Section 5‑B(1) of the Andhra Pradesh General Sales Tax Act, 1957, arguing that the gas was a "consumable". The High Court dismissed the writ petition, holding that nat…

Mahalaxmi Oil Mills and other assessees claimed that tobacco seed oil and tobacco seed cake were exempt from sales tax under Section 8 of the Andhra Pradesh General Sales Tax Act, 1957, which exempts "tobacco and all its products". The State of Andhra Pradesh contended that the definition of "tobacco" in the Act, mirro…

Supra Marketing Agencies, a dealer registered under the Andhra Pradesh General Sales Tax Act, 1957 and the Central Sales Tax Act, 1956, entered into a supply agreement with the Andhra Pradesh Backward Classes Cooperative Finance Corporation for the Adarna project. The State Commercial Tax Department directed the Corpor…

The assessee, T.G. Lakshmaiah Setty & Sons, a dealer in groundnut oil and cotton seeds, was assessed under the Andhra Pradesh General Sales Tax Act, 1957 for the years 1967‑68, 1970‑71 and 1971‑72 on cotton lint at 3% as an unclassified good. Relying on Alimchand Topandas Oil Mills, they argued that cotton lint should …

Tata Consultancy Services appealed against the Andhra Pradesh High Court's decision that standardized computer software is a "good" liable to sales tax under the Andhra Pradesh General Sales Tax Act, 1957. The High Court distinguished between customized software (potentially not a good) and standardized software (a goo…

The State of Andhra Pradesh (Revenue) appealed against a High Court order that allowed manufacturers, dealers and traders of capacitors to claim a concessional tax rate on the basis that capacitors are "electronic goods". The assessees relied on Government Orders 520 and 521 and a list prepared by the Electronic Commis…

Orient Traders, a dealer in silver bullion, challenged a reassessment that imposed a 2% sales tax for the year 1994-95, arguing that Government Orders (G.O.) No. 1092 (1994) and No. 252 (1995) which reduced the rate to 1.5% and 0.5% respectively, applied to both gold and silver bullion and specie. The State argued that…

Corromandal Pharmaceuticals Ltd., declared a sick industrial company, had a rehabilitation scheme sanctioned by BIFR in 1990. The Andhra Pradesh Commercial Tax Department issued sales‑tax assessments for 1992‑93 and 1993‑94 and began recovery proceedings in 1994‑95, after the scheme was in force. The company obtained a…

The petitioners, American Remedies Pvt Ltd and another, challenged a demand for differential sales tax that arose after the Andhra Pradesh legislature amended Entry 37 of the Andhra Pradesh General Sales Tax Act, 1957 by the 1996 Amendment Act. They argued that the demand was invalid and that liability should depend on…

The petitioners, cement manufacturers and their stockists, challenged three tax notifications—two by Andhra Pradesh (under its General Sales Tax Act and the Central Sales Tax Act) and one by Karnataka—reducing the sales tax rate on cement. They argued that the notifications created discriminatory preferences and violat…

The appellants, dealers under the Andhra Pradesh General Sales Tax Act, 1957 and the VAT Acts, filed appeals against assessment orders but were rejected by the Appellate Authority for not producing proof of payment of tax dues as required by the second proviso of the relevant statutes. The High Court dismissed their wr…

A.P. Products purchased various spices that were taxable under Entry 182 of the First Schedule of the Andhra Pradesh General Sales Tax Act, 1957. It mixed and ground these spices to produce masala powder and claimed that, because the ingredients had already been taxed, the finished product should be exempt from further…

The appellants, leasing companies, entered into master lease agreements for equipment and were taxed by several states on the transfer of the right to use the goods. The states relied on explanations in their sales tax statutes that deemed the taxable event to occur where the goods were used, irrespective of where the …

The appellants, manufacturers and dealers of fully automatic washing machines, claimed that their products qualified as "electronic goods" under a 1988 notification issued under Section 9 of the Andhra Pradesh General Sales Tax Act, 1957, and therefore were liable to a concessional tax rate of 2% (later 4%). The State …

The appellants, dealers under the Andhra Pradesh General Sales Tax Act, 1957, contended that the sales tax component collected from buyers—whether shown separately in the bill or collected via debit notes—should not be counted in their "turnover" for computing sales tax liability, arguing that the tax is not part of th…

The appellants, dealers in tamarind in Andhra Pradesh, purchased tamarind from Orissa, paying tax there, and brought it into the state for sale. An amendment to the Andhra Pradesh General Sales Tax Act, 1957 (Act 19 of 1986) moved tamarind bought outside the state to the First Schedule, taxing it at the point of first …

Mis Anand Commercial Agencies, a partnership engaged in manufacturing groundnut oil, imported oil from Karnataka and was taxed at the higher rate of 6½ paise per rupee under Entry 24(a) of the Andhra Pradesh General Sales Tax Act, 1957. The firm contended that this rate was discriminatory and violated Articles 301‑304 …

Tata Consultancy Services (TCS) sold canned computer software packages and was assessed sales tax by the Andhra Pradesh Commercial Tax Officer, who held that the software constituted "goods" under the Andhra Pradesh General Sales Tax Act, 1957. TCS appealed, arguing that software is intangible intellectual property and…

The appellants, Telangana Steel Industries and others, challenged the levy of sales tax on iron wires produced from wire rods that had already been taxed. The issue was whether wires constitute a separate taxable commodity from the rods under Section 14(iv)(xv) of the Central Sales Tax Act, 1956, invoking the single‑po…

The State of Andhra Pradesh appealed against High Court decisions that set aside sales‑tax assessments made on returns filed after the prescribed filing date. The assessments were passed more than four years but within six years from the end of the assessment year. The Court examined the Andhra Pradesh General Sales Ta…

Mis. Vadilal Chemicals Ltd. set up a small‑scale unit in Medak to produce liquor ammonia and to refill anhydrous ammonia into cylinders. It obtained a final eligibility certificate under the 1993 Government Order granting a five‑year sales‑tax holiday. The Deputy Commissioner of Commercial Taxes (DCCT) later issued pre…