Andhra Pradesh Value Added Tax Act, 2005

The Andhra Pradesh Value Added Tax Act, 2005

(Act No. 5 of 2005)

AP143

LEGISLATIVE HISTORY 6

 

·  As Amended upto Act No. 13 of 2013, dated 09-07-2013 ·  As Amended Act No. 6 of 2017, dated 26.4.2017

 

Introduction to VAT6

 

Critical Summary of VAT Act, 2005 As and from 1st April, 2005 a new tax system called Value Added Tax will come into force throughout India. It will replace totally the existing sales tax system whereunder tax was levied and collected at every stage of sale or purchase of goods or at specified points. There were different rates as many as 16 for different commodities. In addition several goods, transactions, individuals and classes of persons were exempted from the levy and collection of tax. There were tax holidays, loans and deferments of tax. In the course of time it has become too cumbersome. Evasion and avoidance of tax have become common. Enforcement has become arbitrary. A new system of tax called value added tax is designed to cure many of the problems above stated. What is VAT? In this context the Government of India thought it advisable to replace sales tax by VAT. The principal and most attractive feature of the value added tax system is that in the tax payable by the dealer to the Government on his sales turnover he will get advantage of deduction of the entire tax paid by him to his vendor at the time of purchase. For example, if a dealer purchases goods for Rs. 10 lakh and pays his vendor a tax at 5% amounting to Rs.50,000/-; when he in his turn sells the same goods for Rs. 20 lakhs, he should pay tax at 5% which comes to Rs. 1,00,000/-. But in the case of VAT he gets a rebate of Rs.50,000/- which he has already paid at the time of purchase and pays only Rs. 50,000/- as tax and not Rs. 1,00,000/-. This advantage he will get only if he maintains the accounts properly and correctly. Therefore under VAT system it is to the advantage of the dealers to maintain accounts correctly one after the other in the chain from manufacturer to the consumer. The above adjustment makes it clear that what the VAT dealer pays as tax is on the difference between the purchase value of the goods and their sale value when he sells them. Such difference is called value addition which may consist of the costs of processing, packaging, transit incurred by the dealer between the date of purchase and the date of delivery of the goods he sold, the tax he paid to his vendor and his own profit margin. Hence this tax system has come to be called Value Added Tax System. Three categories of dealers Under VAT there are three classes of dealers. Those dealers whose taxable turnover is less than Rs. 7.5 lakhs, and the dealer who deals exclusively in exempted goods are called exempted dealers. They need not get themselves registered nor pay any tax. Even where the turnover of the exempted dealer exceeds Rs. 1 crore he still continues to be exempted dealer, if he is dealing in exempted goods. The next group of dealers are called TOT dealers. The TOT dealer is a dealer whose turnover of all taxable goods exceeds Rs. 7.5 lakhs but does not exceed Rs. 50 lakhs (w.e.f. 20-4-2012). The rate at which the TOT dealer pays the tax is 1% flat rate. These dealers cannot claim the rebate of tax they pay to the dealers from whom they purchase their goods nor the tax they collected from their purchasers will be counted in the tax payable by the subsequent dealer or VAT dealer. The advantages the TOT dealers enjoy are: (1) they need not maintain the accounts separately for each class of goods for which different tax rates are prescribed under the Schedule; (2) easy quantification of their tax liability. It is in the interests of the TOT dealers that they should bring into account their turnover duly and properly so that they may have the advantage of being taxed at the concessional rate of 1%. The third category of dealers are called VAT dealers whose taxable turnover is above Rs. 50 lakhs (now T.O. limit increase, w.e.f. 20-4-2012). They constitute an important sector of the whole system. In order that this system works smoothly and without any complications, the Act deliberately did not provide any exemptions whatsoever in respect of any commodities or to any dealer or classes of dealers who come under the VAT net. The Act does not contain any provisions whereby the State Government can interfere with the working of the system. It is expected that VAT would operate as a computer by itself in accordance with the programme already set. Registration Of the three categories of dealers — exempted dealers, TOT dealers and VAT dealers, the first of them need not get themselves registered, and they are unaffected by law. The second category of dealers must have been already registered under the existing Sales Tax Act. They might have been given their General Registration Number (GRN). All those dealers who were already registered under the existing Sales Tax Act and whose turnover is above Rs.7.5 lakhs and upto Rs.50 lakhs are deemed to have been registered as TOT dealers. In case, the turnover of these dealers exceeds Rs. 50 lakhs they should necessarily apply for registration as VAT dealers if they are not already classified as TOT dealers and given Tax Identification Number (TIN) by date of commencement of the Act. Those dealers who expect their turnover to exceed Rs. 50 lakhs in a year the last date of which falls in any month after 31st March, 2005 and all those dealers who start business after 31st March, 2005 and who estimate that their turnover in a year may exceed Rs. 50 lakhs shall apply for registration and get themselves registered as VAT dealers. The immediate consequence of registration as a VAT dealer is that he shall pay tax at 1%, 5% (w.e.f. 14-9-2011), 14.5% (w.e.f. 15-1-2010) or at special rates on the goods he sells and shall have the advantage of deducting the input tax they pay to the dealers from whom they purchase in the tax payable by them. A registration as a VAT dealer mandates that the dealers shall maintain the accounts in the manner prescribed and shall pay the tax in accordance with time schedule.

The following Act of the Andhra Pradesh Legislative Assembly which was reserved by the Governor on the 16th March, 2005 for the consideration and assent of the President received the assent of the President on the 25th March, 2005 and the said assent is hereby first Published on the 28th March, 2005 in the Andhra Pradesh Gazette for general information.

An Act to provide for and consolidate the law relating to levy of value added tax on sale or purchase of goods in the State of Andhra Pradesh and for matters connected therewith and incidental thereto.

Be it enacted by the Legislative Assembly of the State of Andhra Pradesh in the Fifty sixth Year of the RePublished of India as follows:

CHAPTER I

Preliminary

1. Short title, extent and commencement:-(1) This Act may be called the Andhra Pradesh Value Added Tax Act, 2005.

(2) It extends to the whole of the State of Andhra Pradesh.

(3)(a) Sections 1,2,17,18 and 78 shall be deemed to have come into force with effect from 31st January, 2005 ; and

(b) the remaining provisions shall come into force on such date[as the Government may, by notification, appoint].

Object & Reasons6

 

Statement of Objects and Reasons - Act No. 5 of 2005. - In order to implement the Value Added Tax system in all the States in the Country, an empowered committee of State Finance Ministers has been constituted under the Chairmanship of Dr. Asim Das Gupta, Hon'ble Minister for Finance, Government of West Bengal. And the Committee has arrived at consensus on various policy issues involved in implementation of the Value Added Tax System in the country. The Andhra Pradesh Value Added Sales Tax Bill, 2003, which has been passed by the Legislative Assembly of the State received the assent of the President on 10.12.2004 and the same has been Published as Andhra Pradesh Act No. 9 of 2004 on 28.12.2004 in the Andhra Pradesh Gazette. The provisions of the Andhra Pradesh Value Added Sales Tax Act, 2003 (Act No. 9 of 2004) have not been brought into force, as the intention of the Government is to bring the said system of taxation into force with certain modifications. The empowered committee constituted by the Government of India has suggested certain amendments to the Andhra Pradesh Value Added Sales Tax Act, 2003. It is considered not desirable to carry out the amendments to the said Act as suggested by the empowered committee at this stage, before bringing the Act into force. The registration of dealers must commence from 01.02.2005, so that all the VAT dealers are registered and empowered to issue tax invoices by the time the said provisions of the Act come into force. It is necessary to clear the doubts in the minds of the general Public and trading community in particular before the commencement of the registration of dealers. It is also necessary to complete the training for the staff of the Commercial Taxes Department so as to enable them to undertake a State wide awareness programme for dispelling any doubts in the minds of the general Public and trading community in particular about the provisions of the Act well in advance prior to implementation of the provisions of the Act. As the Legislative Assembly was not then in session and it has been decided to give effect to the above decision immediately, the Andhra Pradesh Value Added Tax Ordinance, 2005 (Andhra Pradesh Ordinance No. 1 of 2005) has been promulgated by the Governor on the 31st January, 2005. Appended to L.A. Bill No. 2 of 2005 and Published in Andhra Pradesh Gazette Part 4-B, Extraordinary No. 2, dated 3-3-2005. This bill seeks to replace the said Ordinance. Statement Of Objects And Reasons - Act No. 23 of 2005. - In terms of the provisions of sub-section (7) of Section 4 of the Andhra Pradesh Value Added Tax Act, 2005, any dealer executing any works contracts for the government or Local Authority may opt to pay tax by way of composition at the rate of 4% on the total value of the contract executed; and any dealer executing any works contracts other than the Government and Local Authority may opt to pay tax by way of composition at the rate of 4% of 50% of the total consideration received for any specific contract. In order to remove the different rate of tax prescribed in respect of works contracts for Government and Local Authorities and other than the Government and Local Authority and to maintain uniformity in levying tax on the dealer executing works contract, tie Government have decided to levy a tax at 4% on all the contracts executed for the Government or for others other than the Government by suitably amending the provisions of the Act. As the Legislative Assembly of the State was not then in session having been prorogued and it has been decided to give effect to the above decision immediately, The Andhra Pradesh Value Added Tax (Amendment) Ordinance, 2005, (Andhra Pradesh Ordinance 20 of 2005) was promulgated by the Governor on 27th August, 2005. Appended to L.A. Bill No. 31 of 2005, Published in Andhra Pradesh Gazette Part 4-A, Extraordinary No. 33, dated 5-10-2005. This Bill seeks to replace the above said Ordinance. Statement of Objects and Reasons - Act No. 10 of 2006. - In terms of the provision of sub-section (9) of Section 4 of the Andhra Pradesh Value Added Tax Act, 2005 every dealer running any restaurant, eating house or hotel by whatever name called may opt to pay tax by way of composition at the rate of twelve and half percent on sixty percent of the total amount charged by the said Value Added Tax dealer for such supply. Now, the Government have taken a decision to impose a tax on every dealer running any restaurant, eating house, catering establishment, hotel, coffee shop, sweet shop or any establishment by whatever name called and any club, who supplies by way of or as part of any services or in any other manner whatsoever of goods, being food or any other article for human consumption or drink, at the rate of twelve and half percent (12.5%) on sixty percent (60%) of the taxable turnover, if the taxable turnover in a period of proceeding twelve months exceeds Rs. 5,00,000/- (Rupees five lakhs) or in the preceding three months exceeds Rs. 1,25,000/- (Rupees one lakh twenty five thousand). The Government also taken decision to amend sub-section (4) of Section 22 for the reason that many works contractors having a turn over below Rs. 40,00,000 (Rupees forty lakhs only) did not registered as a Value Added Tax dealer. As the Legislative Assembly of the State was not then in session having been prorogued, and it has been decided to give effect to the above decision immediately, the Andhra Pradesh Value Added Tax (Second Amendment) Ordinance, 2005 (Andhra Pradesh Ordinance No. 24 of 2005) has been promulgated by the Governor on the 24th November, 2005. Appended to L.A. Bill No. 46 of 2005 and Published in Andhra Pradesh Gazette Part 4-A, Extraordinary No. 47, dated 12-12-2005. The Bill seeks to replace the said Ordinance. Statement of Objects and Reasons - Act No. 34 of 2006. - In terms of Section 3 of the Andhra Pradesh Value Added Tax Act, 2005 the Government shall appoint an Appellate Tribunal to exercise the functions conferred on the Appellate Tribunal by or under the Act. However the functions of the Appellate Tribunal are not specified in the Act It is therefore, now, proposed to incorporate a provision in regard to functions of the Appellate Tribunal under Section 3 of the Act, on the lines of functioning of the Sales Tax Appellate Tribunal under the provisions of Section 3 of Andhra Pradesh General Sales Tax Act, 1957. According to sub-section (2) of Section 13, the VAT Dealer who registered under the Andhra Pradesh Value Added Tax Act, 2005 shall be entitled to claim the Sales Tax paid under the Andhra Pradesh General Sales Tax Act, 1957 on the stocks held in the State on the date of commencement of the Andhra Pradesh Value Added Tax Act, 2005. As practical difficulties arose in implementation of the said provision for assessment of tax on the stocks held it has become necessary to amend Section 13 of the Act. Similarly Section 38 of the Act also provides refund of Tax in cases where input tax credit exceeds the amount of tax payable by the dealer. It also prescribes time for refund of tax within a period of ninety days in respect of exports and one year in other cases. In order to grant refunds of excess tax by the dealers in deserving cases, it is proposed to amend Section 38 of the Andhra Pradesh Value Added Tax Act, suitably. Appended to L.A. Bill No. 18 of 2006, Published in Andhra Pradesh Gazette Extraordinary No. 18, Part 4-A, dated 22-8-2006. This Bill seeks to give effect to the above decision. Statement of Objects and Reasons - Act No. 5 of 2007. - According to the sub-section (3) of Section 22 of the Andhra Pradesh Value Added Tax Act, 2005, tax at the rate of 4% shall be deducted from the contractor who executed works for State Government or Local Authority and to remit the amount so deducted as prescribed under rules. Further sub¬section (4) of Section 22 provides that the amount of tax payable by the contractor executing works for contractors other than the State Government Department or Local Authority, shall be deducted from the amount payable by such contractor deducting tax at source shall remit such amount as prescribed in the rules. The above provisions were made to collect the tax on works contract at source effectively. In the case of works executed for State Government Department and Local Bodies the deduction was equal to the tax element provided in the estimates prepared and hence there was no liability on the part of the contractor. In the case of other contracts the deduction of tax which was initially prescribed at 2% was subsequently enhanced to 4% presuming that the contractors will generally opt for composition scheme. In Writ Petitions bearing number 1278 & 7998 of 2006 filed by M/s. Larson & Toubro and M/s. Dough Engineering Limited, the Hon'ble High Court of Andhra Pradesh held that sub-sections (3) & (4) of Section 22 as unconstitutional and beyond the competence of legislature of the State of Andhra Pradesh, on the grounds that (1) the contracts which do not involve transfer of property in goods may be subjected to deduction of tax at source, (2) the interstate purchases falling under the purview of CST Act are not taken into consideration since deduction of tax at source is on total value of the contract; and (3) it requires contractors to deduct tax from the subcontractors resulting in one more deduction of tax at source while the liability is only once. The present amendment proposes to insert new sub-section (3) for deduction of tax at source payable by the contractor by the contractor by rectifying the deficiencies pointed out by the Hon'ble High Court of Andhra Pradesh. The new sub-section (4) proposed to be inserted under Section 22 prescribes the procedure for deduction and remittance of the tax deducted at source by deleting existing sub-section (7). It is proposed to levy tax on the sales of packed items of food across the counter by hotels and bakeries at the rates of tax as applicable under respective schedules, as no service is involved in such transactions as in the case of food items supplied in a hotel, and also to exempt the mess charges collected by hostels run for students where the amount charged is less than Rs. 1000/- per student per month. It is also proposed to amend the Schedules to be in conformity with the decisions of the Empowered Committee representing all States monitoring the implementation of Andhra Pradesh V.A.T. Act at National level. To achieve the above objects in view, the Government have decided to amend Sections 4, 22 and the Schedules, II and IV of the Andhra Pradesh Value Added Tax Act, 2005 suitably. Appended to L.A. Bill No. 18 of 2006, Published in Andhra Pradesh Gazette Extraordinary No. 18, Part 4-A, dated 22-8-2006. This Bill seeks to give effect to the above decision. Statement of Objects and Reasons - Act 14 of 2007. - Government of India extends several duty and tax concessions to Diplomatic Missions/Consulates on the basis of reciprocity to facilitate their functioning in India. The State Government also extended the facility of refund of payment of taxes under the provisions of sub-section (5) of Section 38 of the Andhra Pradesh Value Added Tax Act, 2005 on the purchases made by the specialized agencies of the United Nations Organisations and Consulates or embassies of any Country located in the State, or International Corp. Research Institute for Semi Arid Tropics, Hyderabad. The Government of India, Ministry of External Affairs has requested the State Government to stop exemptions or refunds of VAT or Luxury Tax to U.S. Embassy and to issue notification to this effect. Accordingly, it has been decided to amend sub-section (5) of Section 38 suitably. The commodities "Jaggery" and "Tamarind" were exigible to VAT @4% from 01-04-2005. In pursuance of option given by the Empowered Committee of States and taking into consideration the interests of farmers and consumers, the Government of Andhra Pradesh have decided to exempt the commodities "Jaggery" and "Tamarind" from VAT and accordingly notifications have been issued granting exemptions to the said items from VAT w.e.f. 01-01-2007 and 01-02-2007 respectively. The Bill seeks to give effect to the above decision. Statement of Objects and Reasons - Act No. 39 of 2007. - Sub-section (7) of Section 4 of the Andhra Pradesh Value Added Tax Act, 2005 was amended by the Andhra Pradesh Value Added Tax (Amendment) Act, 2005 to restrict the levy of tax on one dealer wherever the contractor and sub-contractor was involved. As a result of the amendment, sub-contractor is liable whereas main contractor is provided exemption with regard to the consideration paid to sub-contractor. It is observed that the composition of tax provided to builders and developers of residential apartments/houses is getting complicated on account of shifting of the liability to sub-contractors in general because most of the builders getting the work executed by sub-contractors. At present, the builders and developers are paying one percent of the total consideration of market value fixed for registration whichever is higher toward tax by way of composition. This is working very well and compliance is found to be very high. It is proposed to levy the tax in respect of the residential apartments and houses at one percent of the total consideration or market value for registration whichever is higher without reference to any part of the work being entrusted to sub-contractor. The liability will be fixed on only builder if he has opted to pay tax by way of composition. As the State Legislature was not then in session having been prorogued, and it was decided to give effect to the above decision immediately, and the Andhra Pradesh Value Added Tax (Amendment) Ordinance, 2007 (Act No. 10 of 2007) was promulgated by the Governor on 18.9.2007. Appended to L.A. Bill No. 27 of 2007, Published in Andhra Pradesh Gazette Part 4-A, Extraordinary No. 27, dated 12.11.2007. This Bill seeks to replace the said Ordinance. Statement of Objects and Reasons - Act No. 40 of 2007. - The Government of India reduced the rate of Central Sales Tax from 4% to 3% from 1-4-2007 as a first step towards phasing out of Central Sales Tax. While doing so they have permitted the State Government to levy tax on Tobacco products by deleting Tobacco from the list of goods liable for Additional Excise Duty. Further, the Empowered Committee has recommended for correction of entries of the respective Schedules of the Andhra Pradesh Value Added Tax Act, 2005, so as to levy tax on par with other neighbouring States based on feedbacks received from the States backed by the said Committee. Accordingly, Government have made the following alterations and additions to the Schedule-I with effect from 1-4-2005, Schedule IV with effect from 1-4-2007 and Schedule-VI with effect from the date to be appointed by the Government, of the said Act, 2005 by issuing Notifications under the powers conferred by sub-section (1) of Section 79 of the said Act. (i) Entry 24 of Schedule-I: "Meat, Flesh of Poultry, Fish including dry fish, Prawns, Prawn Seed, Lobsters, Crabs, Shirmps and other sea food except when they are sold in frozen state or in a sealed container, eggs, livestock and animal hair." (ii) Entry 51 of Schedule-N: "Rail Coaches, Engines, Wagons and Parts thereof', and (iii) Entry 6 of Schedule-N: "Tobacco products including Gutkha, Khara, Masala, Kimam, Dokta, Zarda, Sukha or Surthi except those specified in Schedule-I and Cigarettes". Sub-section (2) of Section 79 of the said Act contemplates introduction of a Bill were notification is issued under sub-section (1) of Section 79 during the next session of the Legislative Assembly following the date of the said notification to give effect to the alterations, additions, or cancellation, as the case may be, of the Schedules specified in the Notification. Appended to L.A. Bill No. 28 of 2007, Published in Andhra Pradesh Gazette Part 4-A, Extraordinary No. 28, dated 12.11.2007. Now this Bill seeks to give effect to above alterations and additions to the said Schedules. Statement of Objects and Reasons - Act 15 of 2008. - The Government of Andhra Pradesh introduced the VAT system by enacting the APVAT Act, 2005. Under the said Act goods liable for tax are included in six schedules. Ist Schedule consisting exempted goods from Tax, IInd schedule consisting goods liable for Zero rated and eligible for input Tax Credit, IIIrd Schedule consisting of goods liable for Tax @ 1%, IVth Schedule consisting goods liable for Tax @ 4%, Vth Schedule consisting of goods which are not included in any of the schedules, liable for Tax @ 12.5% and VIth Schedule consisting of goods liable for special rates of 70% on liquor and 33% and 22.5% leviable on different petroleum products. Keeping in view the mandate of empowered committee and the rates of tax adopted by the neighbouring States, Government has been considering the request of the traders & proposals of the Commissioner of Commercial Taxes, for making changes in the respective Schedules, keeping in view the Public interest, and to provide safeguards against diversion of trade to other States. Accordingly, the Government included the specified goods sold by Canteen Stores Depot for Defence Personnel in Schedule-I of exempted goods, by deleting it from IInd Schedule of Zero Rates and eligible for input Tax Credit. A decision has been taken to include all goods sold to units, Operator, Developer, Co-developer and Contractors engaged by them for use in processing area of the respective Special Economic Zones. The Government also included the Co-operative Electric Supply Society Limited, Sirsilla, under entry 116(k) of Schedule IV to enable them to make purchases at 4% rate of tax instead of 12.5% on par with similar Societies. The entries 119 and 120 have been added to the IVth Schedule for leaving tax on Spare parts of Fire Arms and Weapons and on Tread Rubber at the rate of 4% instead of 12.5% now being levied, in order to facilitate the local manufacturers to sell their goods in the State Competing with the manufacturers of the other States where rate of tax is lower than the Tax existing in our State, otherwise the State may lose the revenue on account of diversion of Trade. The Government in order to promote Civil Aviation in the State and for making Hyderabad as Hub, decided to reduce the rate of tax on Aviation Turbine Fuel from 33% to 4%, by making amendment to Schedule VI Accordingly. Sub-section (2) of Section 79 of the Andhra Pradesh Value Added Tax Act, 2005 contemplates introduction of Bill where notification is issued under sub-section (1) of Section 79 during the next session of the Legislative Assembly following the date of the said notification to give effect to the alterations, additions or cancellation, as the case may be, of the Schedules specified in the Notification. Now, this Bill seeks to give effect to above alterations and additions to the said Schedules. Statement of Objects and Reasons - Act No. 28 of 2008. - The State of Andhra Pradesh introduced Andhra Pradesh Value Added Tax, 2005 with effect from 1-4-2005 for levy and collection of Tax on sale of goods. Section 2 of Andhra Pradesh Value Added Tax Act, 2005 contains definitions of various terms referred to in the Act. Amendment is proposed to the existing definitions in case of Dealer, Input Tax, Output Tax and Total Turnover to be in conformity with the amendments proposed to the relevant provisions in the Act. The definition of Special Economic Zone is newly proposed as there are some provisions referring to Special Economic Zone in the Act. Under Section 4 of the Act contingent purchase tax is leviable under certain circumstances at a uniform rate of 4% irrespective of the rate of tax specified in the goods in schedules. Now it is proposed to levy tax at the rate applicable under schedules and also on the value of purchase proportionate to the value of the goods disposed off in the manner prescribed under the Section. In respect of works contract as there was no clarity in the existing provisions regarding reduction of value of goods purchased from other States and from unregistered dealers, it is now proposed to remove the ambiguity by way of amendment to the charging section. Further a new charging provision is proposed to be added to Section 4 of the Andhra Pradesh Value Added Tax to make the agents of resident principal liable to tax under this Act on par with the agents of non resident principles. A new sub-section 7-A is proposed to be inserted by granting exemptions on sale of goods for the purpose of setting up and maintenance of Special Economic Zone on the lines of National Policy relating to Special Economic Zone. Consequently it is proposed to delete the existing provisions under Section 8(c) of the Act. It is proposed to add a new provision to Section 13, to allow adjustment of Input Tax Credit between an agent and a resident principal. This is taken up as a consequence of amendment proposed to make agent of resident principal liable to tax under Section 4. It is also proposed amend Section 17 of the Act to make agent of resident principal register of Value Added Tax compulsorily irrespective of threshold limit This is also taken up as a consequence of proposed amendment making agent liable to tax. A new provision is proposed to be added under Section 22 authorizing for deduction/collection of tax in total from the bills of works contractor, wherever a separate provision for tax at the rate of 4% is provided in the estimates in respect of works of the Government or Local Authority, to avoid undue enrichment by the works contractor. At present, deduction of only 2.8% of tax is prescribed despite the fact that the tax is provided to the contractor @ 4% over and above the estimates. An amendment was also proposed to Section 29 of the Act, to authorize the sales tax authorities for attaching the bank balances including over draft amount for recovery of Value Added Tax arrears. At present the amounts, of the defaulter available in the bank as balance, are only liable for attachment. A new provision was also proposed to be added under Section 38 of the Act to allow refunds of tax paid or amounts deducted in case of unregistered dealers. At present the provisions for refunding of tax relating to unregistered dealers are not available in the Act. A new provision is proposed to be added under Section 55 of the Act to levy higher penalty of 200% in case where a false or fabricated declarations are filed to claim concessional rate of tax under the Section. As all the above amendments are proposed to remove the ambiguity in the existing provisions there is no revenue implication. The following amendments to Schedules appended to the Andhra Pradesh Value Added Tax Act, 2005 are also proposed to be made. Based on the practical difficulties faced in applying the entries of Schedules the description of commodities in entries relating to; Agricultural implements (SI.No.1), Seeds (SI.No.44) of Schedule-I, Goods of intangible or incorporeal nature (Sl. No.2), Pipes of all varieties (Sl .No.45), Moulded Plastic footwear (Sl. No.46), Printed Material (Sl. No.47), Industrial Input (Sl.No.100), Processed Meat (Sl. No.107), Ayurvedic Products (Sl. No.117), of Schedule-IV) is proposed to revised for clarity and to remove ambiguity. It is proposed to add the following commodities to Schedule-IV taxable at 4%, which are presently taxable at the rate of 12.5%, to avoid trade diversion and to encourage the local manufactures. i. Yeast of all kinds and forms. ii. Gel used for preparing bakery products and bread softener. It is proposed to add the commodities i.e. Coconut and Copra to Schedule-I, exempted goods, which are presently taxable at the rate of 4% in the interest of the local farmers and agriculturist growing coconuts. To achieve the above objects, it is decided to amend the Andhra Pradesh Value Added Tax Act, 2005, suitably. Appened to L.A. Bill No. 23 of 2008, Published in Padhra Pradesh Gazette Part 4-A Extraordinary No. 23, dated 26-8-2008. This Bill seeks to give effect to the above decisions. Statement of Objects and Reasons - Act No. 4 of 2009. - The proposal relating to amendment of Sections 4,17,22,33 and to give statutory effect to the Notifications amending the Schedules, I, IV and VI under Section 79 of the APVAT Act, 2005 aiming at removing the difficulties arising at field level in implementation of the Act, etc. At present for registration of dealers as VAT dealers and TOT dealers two fold threshold limit of Turnover is prescribed for a year and for three months. As it is causing difficulty in implementation, it is proposed to delete the three months turnover limit and to keep the threshold limit at one year turnover only. The film producers were exempted from Tax on lease of feature films under Andhra Pradesh General Sales Tax Act in view of Entertainment Tax collected from exhibitors but it was not extended under the Andhra Pradesh Value Added Tax Act, 2005 introduced from 01-04-2005. Hence, without considering exemption, it is proposed to introduce a composition scheme, to levy Tax on the basis of number of film prints made and released at a single point to reduce burden and to collect Tax at the source for effective and timely realization of Tax. Accordingly, insertion of a new sub-section (8A) under Section 4 and amendment to section 22 of the AP VAT Act, 2005 is proposed. Presently Tax on sales of food articles and drinks in hotels, restaurants etc., is levied @ 12.5% on the 60% of the annual Turnover if it exceeds Rs. 5 lakhs, Effective rate of Tax on Total Turnover would come to 7.5%. This is being misused and some of the dealers are resorting to collect Tax @12.5% on Total Turnover but paying only 7.5% (i.e. 12.5% of 60% of the Total Turnover). It is therefore proposed to levy Tax on sales of Food items in hotels by classifying the hotels as four categories. Hotels providing lodging and boarding will be categorised into Star status of three star and above who will pay Tax @ 12.5% with Input Tax Credit and those below three Star status will pay Tax @ 4% without ITC. The hotels providing only boarding i.e., sales/supply of food articles and drinks and having annual turnover of Rs. 1.5 crores, and above who will pay Tax @ 12.5% with ITC and those will annual turnover below Rs. 1.5 crores will pay Tax @ 4% without ITC. This will also benefit the people of middle and low class as the restaurants with less than Rs. 1.5 crores turnover per annum would cater to their needs. Accordingly, amendment to sub-section (9) of Section 4 is proposed. Whenever stay is granted against collection of demands raised by assessing authorities and disputed by the dealers payment of part of the disputed amount of Tax is imposed as condition precedent for granting stay. The wording of the provision as it exists now is limited to Tax and is not covering the demands of penalty, interest etc. Hence, amendment to section 33 is proposed to remove the said anomoly. The following amendments to schedules of the Andhra Pradesh Value Added Tax Act, 2005 are also proposed to avoid diversion of trade to other States and to remove ambiguity in interpreting the description of goods furnished in the schedules attached to the Andhra Pradesh Value Added Tax Act, 2005. The following changes are proposed: (i) Organic Manure at Sl. No. 26 of Schedule-I (exempted goods), it is proposed to delete de-oiled cake from exemption, as it is chargeable @ 4% under entry 87 of IV schedule. (ii) Entry 44 of Schedule-I. It is proposed to include NAFED in the Nodal Agencies who sell seeds. (iii) The entry (1) under VI Schedule. Change in description is proposed for taxing liquor manufactured and Bottled in other Countries and in India equally. (iv) Under Schedule VI it is proposed to include two new oil companies in the explanation-IV- ie., (1) M/s. Essar Oil Limited and (2) Numaligarh Refinery Limited, to the existing list of Oil Companies. (b) In respect of the following amendments it is proposed to reduce Tax from 12.5% to 4%. (i) Oats - New Entry 122 is proposed to be included in Schedule-IV. (ii) Under Entry 121 - The goods relating to battery chargers (generally sold to Railways) are proposed to be included in Schedule IV of 4% rate so as to avoid diversion of trade as this item is taxed at 4% in other States, which is taxed at 12.5% in Andhra Pradesh. (iii) Under entry 102- amendment is proposed to include pharmaceutical processing equipments. To achieve the above objects in view, it is decided to amend Sections 4,17,22,33 and Schedules I, IV and VI to the Andhra Pradesh Value Added Tax Act, 2005. Appended to L.A. Bill No. 2 of 2009, Published in Andhra Pradesh Gazette Part 4-A, Extraordinary No. 2, dated 9-2-2009. This Bill seeks to give effect to the above decision. Statement of Objects and Reasons - Act No. 20 of 2009. - The Government of Andhra Pradesh introduced the Value Added Tax system by enacting the Andhra Pradesh Value Added Tax Act, 2005. Under the said Act goods liable for tax are included in six Schedules. 1st Schedule consisting exempted goods from tax, IInd Schedule consisting goods liable for Zero rated and eligible for input tax credit, IIIrd Schedule consisting of goods liable for Tax @ 1%, IVth Schedule consisting goods liable for Tax @ 4%, Vth Schedule consisting of goods which are not included in any of the Schedule, liable for tax @ 12.5% and VIth Schedule consisting of goods liable for special rates of 70% on liquor and 33% and 22.5% leviable on different petroleum products and 25% on different Tobacco products. Keeping in view the practical difficulties and to ensure that the provisions of the VAT Act should not be complicated and should be transparent, and in view of the rates of tax adopted by the neighbouring States, Government has been considering the proposals of the Commissioner of Commercial Taxes, for making changes in the respective Schedules to provide safeguards against diversion of trades to other States. Accordingly, the Government decided to delete the following goods which are now taxed at the rate of 4% and specified in Schedule-IV, and to include the same in the list of exempted goods in Schedule-I of the Act: (1) 'Soya Bean De-oiled cake' is included in goods at SI. No. 3; (2) 'Textiles made-ups' is included in the goods at Sl.No. 45; (3) 'Nawar' is added as Sl.No. 60 in the Schedule; (4) 'Goods' sold to transit passengers both incoming and outgoing, at the duty free shops established at the Rajiv Gandhi International Airport, Shamshabad, Ranga Reddy District' is added as Si. No. 61 of the Schedule. Presently, the printed material like diaries, calendars etc., are taxed at the rate of 4% and specified at Sl.No. 47 of Schedule-IV, now for more clarity certain goods like annual reports, application forms, Stationery items like letterheads, visiting cards, bill books, leaflets, flyers, folders, soft bound books, center pinned books, hard case books, computer stationery, posters, brochures, CD/DVD covers, visual aids, danglers, streamers, envelopes, labels, telephone recharge coupons, report cards, Tickets, Cheque Books, Demand Drafts, Coupons and all kinds and classes of forms including tender and bid documents and similar printed materials are specifically mentioned at Sl.No. 47. Further, presently the PVC Cloth, Waterproof Cloth, Tarpauline, Rexine are taxed at the rate of 4% and they are specified at Sl.No. 86 of Schedule-IV. Now, it is decided to include the goods like Vehicle Covers made from PVC Cloths, Waterproof Cloth, Tarpauline and Rexine Products, in the said entry. Further, it is decided that, the goods like Clean Air Ventilation System/ Air Handling Systems and the parts thereof, used in Pharmaceutical Industry, which are presently taxed at the rate of 12.5% shall be taxed at the rate of 4%. Accordingly, the same has been included at S.No. 50 of the Table under entry 102 of the Schedule-IV. Further, it is decided that, the goods like Mosquito nets, insect screens, perimeter screen, Meshes for insects protection, Meshes for gardening and agro meshes, made up of Plastic (polymer) and articles thereof, which are presently taxed at the rate of 12.5% shall be taxed at the rate of 4%. Accordingly, the same has been included as entry 123 in the Schedule-IV. Further, it is decided that, the goods like Tobacco products including Gutkha, Khara Masala, Kimam, Dokta, Zarda, Sukha or Surthi which are presently taxed at the rate of 25% shall be deleted from the Schedule VI, so as to enable to levy tax at the rate of 12.5% on them. Further, it is decided to include M/s. Shell MRPL Aviation Fuels and Services Private Limited in the existing list of Oil Companies in the note under Explanation IV of Schedule VI. Accordingly, certain alterations and additions have been made to the Schedules I, IV and VI by issuing notifications. Sub-section (2) of Section 79 of the Andhra Pradesh Value Added Tax Act, 2005 contemplates introduction of Bill where notification is issued under sub-section (1) of Section 79 during the next session of the Legislative Assembly following the date of the said notification to give effect to the alterations, additions or cancellation, as the case may be, of the Schedules specified in the Notification. Appended to L.A. Bill No. 12 of 2009, Published in Andhra Pradesh Gazette Part 4-A, Extraordinary No. 12, dated 25-8-2009. Now, this Bill seeks to give effect to above alterations and additions to the said Schedules. Statement of Objects and Reasons - Act No. 9 of 2010 - The Government of Andhra Pradesh introduced the Value Added Tax system by enacting the Andhra Pradesh Value Added Tax Act, 2005 with effect from 1-4-2005. Schedule-I of the said Act contains the list of goods exempted from tax, Schedule-II list of goods zero rated for tax, Schedule-Ill list of goods taxed @ 1%, Schedule-IV list of goods liable for tax at the rate of 4% and Schedule-VI contains list of goods subjected to tax at special rates. All the goods other than those specified in I, II, III, IV and VI Schedules come under Schedule-V and are liable for tax at the standard rate (12.5%). Keeping in view of the interest of stake holders and the rates of tax adopted by the neighbouring States, Government has been considering proposals of the Commissioner of Commercial Taxes, for making changes in the rates of tax of items listed under various Schedules and to effect such changes have been issuing notifications under Section 79(1) of the APVAT Act, 2005 from time to time. In the recent past, Government have notified the following changes to various Schedules: 1. Government have included bed sheets, pillow covers, towels, blankets, travelling rugs, curtains, Zari and embroidery articles under entry 45 of Schedule-I (exemption items). 2. Earlier the Government had included 52 items of goods sold by Canteen Stores Department of Defence Services to the defence personnel in Schedule-I. On the representation of defence personnel, 47 more items of goods from SI. No. 53 to 99 have been included in Schedule-I, through a notification issued in February, 2010. An amendment has also been issued to the entry relating to Indian Made Foreign Liquor giving exemption from VAT to liquor with "basic price" upto Rs. 500/- per case instead of "sale Price" below Rs. 500/- per case, as the latter did not allow any benefit to the Defence Personnel. 3. The commodity "Cane (Rattan)" is hither to being liable to tax at the rate of 12.5%. Since, Cane (Rattan) is the raw material which is used predominantly by artisans / craftsmen in making handicraft articles of common consumption; it is decided to include the same in Schedule-IV to levy the tax @ 4% only. 4. The Diesel Power Generators were earlier taxed at 12.5%. It was observed that trade diversion was taking place due to higher rate of tax in Andhra Pradesh on Diesel Power Generators, as compared to the rate of tax prevailing on the same goods, i.e. @ 4% in neighbouring States i.e., Tamilnadu, Karnataka etc. Therefore, it was decided to include the same in the IVth Schedule for being taxed at 4%. 5. In order to augment Government's revenue a notification has been issued to increase the rate of tax on items of conspicuous consumption such as motor vehicles, white goods, electrical goods, cement, lubricants, cosmetics etc., from 12.5% to 14.5%. 6. Government have further decided to increase the rate of tax on "Aviation Turbine Fuel" (ATF) (in Schedule-VI) from 4% to 16%, as the lowest VAT rate on ATF in major States in the country is 20%. 7. In order to make the taxation structure on imported Foreign liquor GATT compatible it is proposed to bring parity in the quantum of State level levies on such liquor and domestically produced liquor. Accordingly Government have issued orders revising the 'Assessable Value' and 'Assessment Fee' on Foreign Liquor (Spirits, Beer and Wine). As a part of this exercise, it is proposed that for the purpose of levy of Value Added Tax on Foreign Liquor imported by M/s. Andhra Pradesh Beverages Corporation Limited the "Custom Duty" charged or chargeable by the Union Government shall not form part of the 'sale price' as defined in Section 2(29) of the AP VAT Act, 2005. 8. As stated above, Government have enhanced the rate of tax on goods taxable at standard rate under Schedule-V of the APVAT Act, 2005 from 12.5% to 14.5%. In view of this, in order to harmonize the rate of tax levied under Section 4(7) (a) (on works contract where accounts are not maintained) and Section 4(9) (a) & (c) (on hotels above 3 star status or with turnover not less than Rs. 1.50 crores) which is now @ 12.5%, needs to be raised to 14.5%. Sub-section (2) of Section 79 of the Andhra Pradesh Value Added Tax Act, 2005 contemplates introduction of Bill where notification is issued under sub-section (1) of Section 79 during the next session of the Legislature following the date of the said notification to give effect to the insertions, substitutions, additions or cancellation, as the case may be, of the Schedules specified in the notification. Appended to L.A. Bill No. 8 of 2010, Published. in Andhra Pradesh Gazette Part 4-A, Extraordinary No. 8, dated 18-3-2010. Now, this Bill seeks to give effect to the above amendments, alterations and additions to the said sections and schedules. Statement of Objects and Reasons - Act No. 21 of 2011. - The Andhra Pradesh Value Added Tax Act, 2005 (Act 5 of 2005) provides for levy of Value Added Tax (VAT) on sale or purchase of goods has been brought into force with effect from 01-04-2005 in the place of the Andhra Pradesh General Sales Tax Act, 1957, which has been repealed under the said Act. Certain provisions of the Act 2005 namely registration of Dealers U/s 17 and Rule making powers U/s 78 of the Act were brought into force w.e.f. 31-01-2005. According to sub-section (4) of Section 2 of the Act, 'Assessing Authority' means an officer authorized by the Commissioner, where as rule 59 of the rules framed U/s. 78 of the Act which came in force also on the 31st January, 2005, prescribed authorities for the purpose of the Act. It has therefore, become necessary to bring them within the meaning of the definition of the assessing authorities. Accordingly, it has been decided to expand the definition of the 'assessing authorities' by amending sub-section (4) of Section 2 to avoid probable legal complications. According to sub-section (5) of Section 4 of the Act, every dealer shall pay tax on the sale price of goods specified in Schedule VI at the special rates and at the point of levy specified therein. All liquors, bottled and packaged in item (1) of the table under Schedule VI are being levied at the rate of 70% as a special rate at the point of first sale in the State. Thus, subsequent sale of liquor are not liable to VAT. As by implication serving of loose liquor to customers in a bar/restaurant would attract levy of tax at the standard rate of 14.5% and sale of such loose liquors can be treated as a subsequent sale, it would amount to double taxation. It has therefore become necessary to exclude sale price of loose liquor from the taxable turn over with retrospective effect from 01-04-2005 by amending the definition under clause (38) of Section 2 of the Act. According to sub-section (1) of Section 4 of the Act, every dealer registered or liable to be registered as a VAT dealer, shall be liable to pay tax on every sale of goods, in the State at the rates specified in the Schedule. In sub-section (7) thereof, there is a difference between a dealer executing any works contract for the Government or Local Authority, with that of a dealer executing works contract other then for Government or Local Authority, in respect of payment of tax. The former dealer deals with the Government or Local Authority has to pay tax on the total value of the Contract. Whereas, the later dealer executing works contract other than the Government or Local Authority has to pay tax on the total consideration received or receivable for any specific contract. Further, under clause (d) of sub-section (7), thereof, a dealer engaged in construction and selling of residential apartments etc., may opt to pay tax by way of composition at the rate of 4% of twenty five percent (25%) of the consideration received or receivable or the market value fixed for the purpose of stamp duty whichever is higher subject to such conditions as may be prescribed. According to this provision sub-contractor of the Contractors who opt for composition scheme, have to pay tax which amounts to double taxation. In this connection, a Committee of Officers, Works Contractors and Tax Practitioners constituted by Government, have made the following recommendations, 1. Removal of distinction between Government contracts and Private contracts. 2. Sub-contractors of contractors who opt for composition scheme may be exempted from taxes to avoid double taxation. 3. Inter-state purchases and purchases from un-registered dealers by the works contractors under composition may be exempted by deleting the relevant provisions in clause (e) of sub-section (7) of Section 4 of the APVAT Act, 2005. 4. Limiting ITC to 75% instead of 90% (now) in non-composition cases to safeguard Government revenue interest. 5. To enact a new composition scheme for works contract involving "Printing" works. Government after considering the said recommendations and suggestions made by the Committee, decided to amend the relevant provisions of Section 4, suitably. According to sub-section (10) (a) of Section 4, every person, who, for an agreed commission brokerage, buys or sells on behalf of any principal shall be liable to tax. It has been specifically decided to exempt, an agent selling agricultural produce on behalf of agriculturist principal basing on the representations made by the Market. Yard Commission Agents, from payment of tax, by suitably amending the said provision and consequential amendment to Section 17 (5) retrospectively w.e.f. 24-09-2008. Bus/Taxi-Cab Operators have represented that the vehicles provided on hire to I.T/Other companies are being subjected to both 'Service Tax' as well as VAT at standard rate by treating the transaction as a transfer of 'right to use goods'. After prolonged discussion of the issue with the concerned Associations, it is proposed to introduce a composition scheme to levy tax @ 4% on such transactions without the benefit of input tax credit. This scheme may be given retrospective effect from 01-04-2005 (date of introduction of VAT Act) to settle all pending grievances/litigations. Hence, an amendment is proposed to Section 4 (8) of the said Act. Consequent to the amendments envisaged to Section 4 of the Act and related provisions dealing with the claims of Input Tax Credit (ITC) on the tax paid on purchases made by the works contractors, the provision of Section 13 also needs to be changed in tender with the amended provisions of Section 4 of the Act. Hence, amendments to the sub-section (5) (a), (g) and (j) and insertion of a new clause (i) corresponding to sub-section (11) of Section 4 and sub-section (7) of Section 13 of the Act are needed and accordingly incorporated in the Bill. As per the provisions of Section 21 of the APVAT Act, 2005, best judgment assessment can be made within four years of due date of return. Sub-section (1) of Section 21 prescribes that the period, for which appeal is pending before the High Court or Supreme Court or stay is granted by the High Court or Supreme Court, has to be excluded for reckoning limitation period for making an assessment. There is no similar Provision in respect of proceedings pending before the Sales Tax Appellate Tribunals. Therefore, an amendment is proposed to sub-section (7) of Section 21 of the Act. According to sub-section (2) of Section 22 or as the case may be under Section 40, if any dealer fails to pay any tax assessed or penalty or any other amount within the time prescribed, he shall pay, in addition to the amount of such tax or penalty or any other amount, interest calculated at the rate of one percent per month for period of delay from such prescribed date for its payment. Of late the interest rate in the economy has gone up and most of the financial institutions are charging interest in excess of 13% upto 15% on working capital loans depending upon the credit worthiness of the borrowers. Hence, in order to disincentivise the retention of tax collected by the dealers with themselves for their business purposes it is imperative to increase the interest rate from one percent per month to one and quarter percent per month on delayed payment of tax dues by the dealers. Accordingly, amendments have been proposed to relevant Sections 22 and 40 of the Act. Vide Act No. 4 of 2009, an amendment was made to Section 33 providing for payment of fifty percent of tax, penalty, interest or any other amount as ordered by the Appellate Authority under Section 31 of the Act. Similar provision is proposed to be inserted for appeals being filed before the Appellate Deputy Commissioner under Section 31 of the Act. Hence, an amendment to this section is proposed. A number of appeals are pending disposal before the Appellate Deputy Commissioners of Commercial Taxes Department as the validity of the Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001 has been struck down by the Hon'ble High Court. The State has filed a Special Appeal against the decision of the Hon'ble High Court before the Hon'ble Supreme Court and obtain orders to the effect that no refunds be allowed pending disposal of the SLP Therefore, it is expedient that the period of pendency of these and similar other cases before the Courts of Law/Tribunal shall be excluded for the purpose of reckoning the period of limitation of finalization of assessments prescribed under the Act. Hence, an amendment is proposed to sub-section (4) (a) of Section 31 of the Act. As per the present provisions of Section 32, suo moto revision of an assessment, where the issue involved in such revision is identical to the issue under appeal pending before the Sales Tax Appellate Tribunal cannot be undertaken by the Departmental Officers. In view of the past experience involved in the disposal of appeals by the Sales Tax Appellate Tribunal, such a provision precludes taking of any action by the Department. Hence the relevant provision is being amended suitably. However, a discretion to the Departmental Officers to defer such cases, basing on the merits of the case, is being proposed by making suitable amendment to sub-section (7) of Section 32. In the interest of trade and industry, consumers and the State and also keeping in view of the rates of taxes adopted by the neighbouring States, the Government has been considering proposals of the Commissioner of Commercial Taxes for making changes in the entries listed in various schedules. In order to effect such changes, notifications have been issued under Section 79 (1) of the Act from time to time. In the recent past Government have decided to notify the following changes to Schedule-IV (items taxed @ 4%.) (a) in Entry 19, for the words "and Auxines", the words "Plant Harmones, Gibberillines, Auxines and plant growth promoters or regulators" have been substituted with a view to include similarly placed goods. (b) in Entry 100, the entry, "Winding wire made of Copper or enameled Copper" has been notified at item No. 234, vide G.O.Ms.No. 461, Revenue (CT.II) Department, dated 19-05-2010 to avoid trade diversion. (c) after Entry 124, a new entry 125, has been notified vide GO.Ms.No. 361, Revenue (CT.II) Department, dated 24-04-2010: "Lime, burnt Lime, Lime Stone, Products of Lime, Dolomite and other White washing materials including Cem powder other than White Cement" being items of common consumption. (d) after Entry 125, a new entry 126 has been notified vide GO.Ms.No. 726, Revenue (CT. II) Department, dated 02-08-2010: "126. Purified Packaged drinking water in bulk containers/Cans and Sachets but excluding aerated, mineral, distilled, medicinal, ionic, battery and de-mineralized water" in order to provide protected water in rural areas at reasonable prices. (e) in entry No. 102, after serial /number 50, issued notification vide GO.Ms.No. 1351, Revenue (CT. II) Department, dated 10-11-2010, including the parts of the Heavy Engineering Equipment/Machinery at Sl.No.51 to 57 of Schedule-IV of the APVAT Act, 2005. Hence, appropriate amendments have been proposed under the provision of sub-section (2) of Section 79 of the Andhra Pradesh Value Added Tax Act, 2005. Appended to L.A. Bill No. 6 of 2011, Published in Andhra Pradesh Gazette Part 4-A, Extraordinary No. 6, dated 24-3-2011. The Bill seeks to give effect to the above decisions. Statement of Objects and Reasons - Amendment Act 11 of 2012. - The Andhra Pradesh Legislature enacted the APVAT Act, 2005 with effect from 1-4-2005 for levy and collection of value added tax on sales of goods. Under the said Act goods liable for tax are included in six Schedules. Schedule-I consisting of goods exempted from tax, Schedule-II consisting of goods liable for Zero rate of tax and eligible for input tax credit, Schedule-III consisting of goods liable for tax @ 1 %, Schedule-IV consisting of goods liable for tax @ 4%, Schedule-V consisting of goods which are not included in any of the other Schedules, liable for tax @ 14.5% and Schedule-VI consisting of goods liable for tax at the special rates. Government of India has started phasing out CST from the financial year 2007-2008. In 2007-08, it was brought down from 4% to 3% and in 2008¬2009 from 3% to 2%. Since the introduction of GST was delayed, the rate of CST has not been further brought down subsequently. The GOI has been compensating the State for loss of revenue on account of reduction of CST. In order to reduce its compensation burden, the GOI advised the States to raise the lower slab of VAT from 4% to 5%. Hence, the State Government have increased VAT rate to 5% from 4% on goods enlisted in Schedule-IV to the APVAT Act. The commodities cotton/man-made/woolen fabrics and textile made-ups etc., and Sugar, were exempt from VAT as the said goods were included in the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957. The Government of India omitted the commodities 'Textiles' and 'Sugar', from the purview of levy of Additional Duties of Excise by amending the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 vide Section 75 read with the Thirteenth Schedule of Finance Act 8 of 2011 with a view to leave the space open for the State Governments to tax these items under VAT. Since the Government decided to continue VAT exemption for fabrics, made-ups and garments made of khadi cloth corresponding amendment was also made to entry 49 of Schedule-1 of the APVAT Act, 2005. Government have decided to exempt VAT on 'Zari', which is used in the handloom sector as an input material and on textile goods produced and sold by Powerloom units, at the first point of sale. Accordingly, notifications were issued. Andhra Pradesh Power Development Company Limited (APPDCL), engaged in power generation, has been granted lower rate of tax @ 5% for goods purchased by it on par with other similar State Publishedlic Sector Units (PSUs). Pipes of all varieties including GI pipes, CI pipes, ductile pipes and PVC pipes, but excluding RCC and PCC pipes and their fittings, were earlier liable to tax @ 14.5%. In order to avoid trade diversion to other neighbouring States and to made the rate of tax on par with other States, it is decided to reduce the rate of tax to 5% on RCC and PCC pipes and Cement poles without input tax credit eligibility on Cement purchases in Andhra Pradesh. Non-woven fabrics were earlier taxable @ 14.5% where as finished goods made of non-woven fabrics were taxable @ 5%. Also other kinds of packing material e.g., PVC sacks, PP Woven Fabrics are also taxable @ 5%. In neighbouring States of Tamilnadu and Karnataka the rate of tax is @ 5% and zero respectively. Hence, to avoid trade diversion it is decided to levy VAT rate @5% on non-woven fabrics. The Government of India omitted all tobacco products from the purview of levy of Additional Excise Duty to enable the States of levy VAT on such products. Andhra Pradesh State has been imposing VAT @14.5% on tobacco products except bidi. Since, several States have increased VAT rate on tobacco products which are demerit goods, ranging from 17% to 25%, the Government decided to increase the VAT rate on the same to 20% from 14.5%. Accordingly, certain alterations, additions and deletions have been made to the Schedules I, IV and VI by issuing notifications under sub-section (1) of Section 79 of the Act. Sub-section (2) of Section 79 of the Andhra Pradesh Value Added Tax Act, 2005 contemplates introduction of Bill where notification is issued under sub-section (1) of Section 79 during the next session of the State Legislature following the date of the said notification to give effect to the alterations, additions or deletions as the case may be, of the Schedules specified in the Notification. Appended to L.A. Bill No. 6 of 2011, Published. in Andhra Pradesh Gazette Part IV-A, ExtraordinaryNo. 6, dated 24-3-2011. Now, this Bill seeks to give effect to above amendments to the said Schedules. Statement of Objects And Reasons - Amendment Act 12 of 2012 - The Andhra Pradesh Value Added Tax Act, 2005 (Act 5 of 2005) has been brought into force with effect from 01-04-2005 for levy and collection of tax on sale of goods. Government of India has proposed to introduce the GST and has started phasing out Central Sales Tax (CST) from the financial year 2007-2008. In 2007-2008, it was brought down from 4% to 3% and in 2008-2009 from 3% to 2%. Since the introduction of GST was delayed the rate of CST has not been further brought down. Subsequently, the Government of India has been compensating the States for the loss of revenue on account of reduction of CST. With a view to reduce its compensation burden the Government of India advised the States to raise the lower slab of VAT from 4% to 5%. Keeping the above suggestion of the Government of India in view, some States like Maharashtra, Tamilnadu, Karnataka, Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh and Uttar Pradesh have already increased the VAT rate for the goods listed in Schedule-IV of the Andhra Pradesh Value Added Tax Act, 2005 from 4% to 5%. The State Government, with a view to augment its revenue, issued a notification vide G.O.Ms.No.1718, Revenue (CT.II) Department, dated 13-09-2011 (w.e.f. 14-09-2011), increasing the rate of tax from 4% to 5% in respect of goods included in Schedule-IV of the APVAT Act, 2005. Apart from the goods listed at Schedule-IV, at present a VAT rate of 4% is leviable under sub-sections (4), (7), (8B), (9), (11) of Section 4 and sub section (6) of Section 13 and sub-section (3-A) of section 22 of the APVAT Act, 2005 as follows:- Sections (4)4 On purchase price of goods purchased from an unregistered dealer, used as inputs for goods exempted from tax and stock transfers/Consignment sales to places outside the State. Section-4(7)(b) Section-22(3A) Works contract for the Government or local authority under composition scheme. Section-4(7)(b) Works Contract for Residential buildings / Commercial Complexes under composition scheme. Section-4(8B) Amount received/receivable towards transfer of Right to use goods. Section-4(9)(b)&(D) Hotels other than Star Hotels/Restaurants etc., having turnover between Rs. 5 lakhs and Rs. 1.50 Crore. Section-4(11) Printers under composition scheme. Section-13(6) Limit on input tax credit on transfer of taxable goods outside the State. Hence, in order to bring the above mentioned tax-rates in harmony with that of the goods included in the Schedule-IV of the Act, it was decided to amend the said provisions of the Act accordingly. As the Legislature of the State was not then in session and the Governor of Andhra Pradesh was satisfied that circumstances exist which render it necessary for him to take immediate action, the Governor promulgated the Andhra Pradesh Value Added Tax (Second Amendment) Ordinance, 2011 (Andhra Pradesh Ordinance No. 9 of 2011). A Bill to replace the said Ordinance could not be introduced in the Legislature during the Session immediately after promulgation of the Ordinance, which lasted for short period. As the said Ordinance ceased to operate with effect from 12-01-2012 by efflux of time as provided under Article 213(2) (a) of the Constitution of India and so as to have the continuity of law, it has become necessary to promulgate another Ordinance on the lines of the said Ordinance 9 of 2011. The Governor of Andhra Pradesh has promulgated the Andhra Pradesh Value Added Tax (Amendment) Ordinance, 2012 (Andhra Pradesh Ordinance No. 3 of 2012) on the 2nd February, 2012. Appended to L.A. Bill No. 7 of 2012, Published. in Andhra Pradesh Gazette Part IV-A, Extraordinary No. 7, dated 22-3-2012. This Bill seeks to replace the said Ordinance. Statement of Objects And Reasons - Amendment Act 13 of 2012. - The Andhra Pradesh Value Added Tax Act, 2005 (Act 5 of 2005) has been brought into force with effect from 1-4-2005 for levy and collection of tax on sale of goods. Under Section 4(9)(d) of the Andhra Pradesh Value Added Tax Act, 2005, dealers having annual turnover above Rs. 5 lakhs and less than Rs. 1.50 crores shall pay tax @ 5% of the taxable turnover of sale of supply of goods, being food or any other article of human consumption or drink served in restaurant eating houses etc. Under Section 17(7) of the Andhra Pradesh Value Added Tax Act, 2005 very small dealers having annual turn-over up to Rs. 5 lakh are exempted from tax liability. Such dealers are also not required to register themselves with the Commercial Tax Department. The small dealers, having annual taxable turnover exceeding Rs. 5 lakhs and upto Rs. 40 lakhs, have an option to register themselves as Turn-over Tax (TOT) dealers and pay TOT @ 1%. These provisions in the VAT Act, 2005 are intended to eliminate or reduce the cost of compliance of very small and small dealers respectively on the one hand and also minimize the administrative cost of the department involved in tax collection on the other. The above mentioned threshold limits were fixed as on 1st April, 2005. Certain Merchant Associations have represented to Government to enhance these limits keeping in mind the cost of inflation. After taking into account the representation of the said Associations it is proposed to raise the tax exemption limit for annual turnover to Rs. 7.50 lakh from the existing limit of Rs. 5 lakhs. Similarly the maximum threshold limit for annual turnover in respect of Turn-over Tax liability is proposed to be raised to Rs. 50 lakhs from 40 lakhs. Appended to L.A. bill No. 8 of 2012, Published in Andhra pradesh Gazette Part IV-A, Extraordinary no. 8 dated 22-3-2012. This Bill seeks to achieve and the above objective.

2. Definitions:- In this Act, unless the context otherwise requires-

(1) 'Additional Commissioner' means any person appointed to be an Additional Commissioner of Commercial Taxes under Section 3A;

(2) 'Appellate Deputy Commissioner' means any person appointed under Section 3A to be an Appellate Deputy Commissioner or any other officer not below the rank of Deputy Commissioner authorized by the Commissioner to be an Appellate Deputy Commissioner;

(3) 'Appellate Tribunal' means the Appellate Tribunal appointed under Section 3;

(4) 'Assessing authority' means any officer of the Commercial Taxes Department authorized by the Commissioner [or as may be prescribed] to make any assessment in such area or areas or the whole of the State of Andhra Pradesh;

(5) 'Assistant Commissioner' means any person appointed to be an Assistant Commissioner of Commercial Taxes under Section 3A;

(6) Business' includes:

(a) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture whether or not such trade, commerce, manufacture, adventure or concern is carried on or undertaken with a motive to make gain or profit and whether or not any gain or profit accrues there from;

(b) Any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern and

(c) Any transaction in connection with commencement or incidental or ancillary to the commencement or closure of such trade, commerce, manufacture, adventure or concern.

Explanation:- For the purpose of this clause

(i) the activities of raising of manmade forests or rearing of seedlings or plants shall be deemed to be business;

(ii) any transaction of sale or purchase of capital goods pertaining to such trade, commerce manufacture, adventure or concern shall be deemed to be business;

(iii) A sale by a person whether by himself or through an agent of agricultural or horticultural produce grown by himself or grown on any land whether as owner or tenant in a form not different from the one in which it was produced, save mere cleaning, grading or sorting does not constitute business.

(7) 'Casual trader' means a person who, whether as principal, agent or in any other capacity, carries on occasional transactions of a business nature involving the buying, selling, or distribution of goods in the State, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration.

(8) 'Commissioner' means any person appointed by the Government to be the Commissioner of Commercial Taxes under Section 3A;

(9) 'Commercial Tax Officer' means any person appointed to be Commercial Tax Officer under Section 3A;

(10) 'Dealer' means any person who carries on the business of buying, selling, supplying or distributing goods or delivering goods on hire purchase or on any system of payment by instalments, or carries on or executes any works contract involving supply or use of material directly or otherwise, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration, and includes:

(a) A company, a Hindu undivided family or any society including a co-operative society, club, firm or association which carries on such business;

(b) a society including a co-operative society, club, firm or association which buys goods from, or sells, supplies or distributes goods to its members;

(c) a casual trader, as hereinbefore defined;

(d) any person, who may, in the course of business of running a restaurant or an eating house or a hotel by whatever name called, sells or supplies by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink whether or not intoxicating;

(e) any person, who may transfer the right to the use of any goods for any purpose whatsoever whether or not for a specified period in the course of business to any other person;

(f) a commission agent, a broker, a delcredere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of any principal; [or principals].

Explanation I:-Every person who acts as an 'agent of a non-resident dealer', that is, as an agent on behalf of a dealer residing outside the State, and buys, sells, supplies or distributes goods in the State or acts on behalf of such dealer as,

(a) a mercantile agent as defined in the Sale of Goods Act, 1930 (Central Act III of 1930), or

(b) an agent for handling goods or documents of title relating to goods, or

(c) an agent for the collection or the payment of the sale price of goods or as a guarantor for such collection or payment and every local branch of a firm or company situated outside the State,

shall be deemed to be a dealer for the purpose of the Act;

Explanation II:- Where a grower of agricultural or horticultural produce sells such produce grown by himself on any land in which he has an interest whether as owner, usufructuary mortgagee, tenant or otherwise, in a form different from the one in which it was produced after subjecting it to any physical, chemical or any process other than mere cleaning, grading or sorting, he shall be deemed to be a dealer for the purpose of the Act;

Explanation III:- The Central Government or the State Government which, whether or not in the course of business, buys, sells, supplies or distributes goods, directly or otherwise, for cash or for deferred payment or for commission, remuneration or other valuable consideration shall be deemed to be a dealer for the purposes of the Act;

Explanation IV:- Each of the following persons and bodies, whether or not in the course of business, who sells or disposes of any goods including unclaimed or confiscated or unserviceable goods or scrap, surplus, old, obsolete, or discarded material or waste products whether by auction or otherwise, directly or through an agent for cash, or for deferred payment or for any other valuable consideration shall be deemed to be a dealer to the extent of such disposals or sales, namely:

(i) Port Trust;

(ii) Municipal Corporations, Municipal Councils, and other local authorities;

(iii) Railway authorities;

(iv) Shipping, transport and construction companies;

(v) Air transport companies and air-lines including National Airport Authority;

(vi) Transporters, holding permits for transport vehicles granted under the Motor Vehicles Act, 1988 (Central Act 59 of 1988) which are used or adopted to be used for hire;

(vii) Andhra Pradesh State Road Transport Corporation; Customs Department of the Government of India administering the Customs Act, 1962 (Central Act 52 of 1962);

(ix) Insurance and financial corporations or companies and Banks included in the Second Schedule to the Reserve Bank of India Act, 1934 (Central Act 2 of 1934);

(x) Advertising agencies;

(xi) Any other Corporation, company, body or authority owned or set up by or subject to administrative control of the Central Government or any State Government.

Explanation V:- Save as otherwise expressly provided for under the Act, the word 'dealer' shall include a VAT dealer and a TOT dealer;

(11) 'Deputy Commercial Tax Officer' means any person appointed to be a Deputy Commercial Tax Officer under Section 3A;

(12) 'Deputy Commissioner' means any person appointed to be a Deputy Commissioner of Commercial Taxes under Section 3A;

(13) 'Exempt sale' means a sale of goods on which no tax is chargeable, and consequently no credit for input tax related to that sale is allowable;

(14) 'Exempted Turnover' means the aggregate of sale prices of all goods exempted under the Act and full or part of the actual value or fair market value of all transactions not taxable under the provisions of the Act, including transactions falling under Section 6A of the [Central Sales Tax Act, 1956;]

(15) 'Fair market value' means the price that the goods would ordinarily fetch on sale in the open market on the date of sale or dispatch or transfer of such goods;

(16) 'Goods' means all kinds of movable property other than newspapers, auctionable claims, stocks, shares and securities, and includes all materials, articles and commodities including the goods as goods or in some other form, involved in the execution of a works contract or those goods used or to be used in the construction, fitting out, improvement or repair of movable or immovable property and also includes all growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale;

(17) 'Goods vehicle' means any motor vehicle constructed or adapted for the carriage of goods, or any other motor vehicle not so constructed or adapted when used for the carriage of goods solely or in addition to passengers and also includes every wheeled conveyance;

(18) 'Government' means the State Government of Andhra Pradesh;

(19) 'Input tax' means the tax paid or payable under the Act by a VAT dealer to another VAT dealer[whether directly by himself or through his agent on his behalf] on the purchase of goods in the course of business;

(20) 'Joint Commissioner' means any person appointed to be a Joint Commissioner of Commercial Taxes under Section 3A;

(21) 'Notification' means a notification Published in the Andhra Pradesh Gazette and the word 'notified' shall be construed accordingly;

(22) 'Output tax' means the tax paid or payable by a VAT dealer [whether by himself or through his agent]on the sale of goods to another VAT dealer or any other person;

(23) 'Place of business' means any place where a dealer purchases or sells goods and includes:

(a) any warehouse, godown or other place where goods are stored or processed or produced or manufactured; or

(b) any place where a dealer keeps his books of accounts; or

(c) any place where business is carried on through an agent by whatever name called, the place of business of such agent;

(24) 'Prescribed' means prescribed by the Rules made under the Act;

(25) 'Purchase Price' means the amount of valuable consideration paid or payable by a person for any purchase made including any sum charged for anything done by the seller in respect of the goods at the time of or before delivery thereof;

Explanation I:- Where the purchase is effected by way of transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract, purchase price shall mean the total consideration for the works contract, and for the purpose of levy of tax purchase price shall be taken to mean the price as may be determined in accordance with the rules, by making such deductions from the total consideration for the works contract as may be prescribed;

Explanation II:- The amount of duties levied or leviable on the goods under the Central Excise Act, 1944 (Central Act 1 of 1944), or the Customs Act, 1962 (Central Act 52 of 1962) shall be deemed to be part of the purchase price of such goods, whether such duties are paid or payable by or on behalf of the seller or the purchaser or any other person;

Explanation III:- Purchase price shall not include tax paid or payable by a person in respect of such purchase;

(26) 'Return' means any return required to be furnished under the Act or the Rules made thereunder;

(27) 'Rules' means rules made under the Act;

(28) 'Sale' with all its grammatical variations and cognate expressions means every transfer of the property in goods whether as such goods or in any other form in pursuance of a contract or otherwise by one person to another in the course of trade or business, for cash, or for deferred payment, or for any other valuable consideration or in the supply or distribution of goods by a society (including a co-operative society), club, firm or association to its members, but does not include a mortgage, hypothecation or pledge of, or a charge on goods.

Explanation I:- A delivery of goods on the hire purchase or any system of payment by instalments shall, notwithstanding the fact that the seller retains the title in the goods, as security for payment of the price, be deemed to be a sale.

Explanation II:- (a) Notwithstanding anything contained in the Indian Sale of Goods Act, 1930 (Central Act III of 1930) a sale or purchase of goods shall be deemed, for the purpose of the Act to have taken place in the State, wherever the contract of sale or purchase might have been made, if the goods are within the State,-

(i) in the case of specific or ascertained goods, at the time the contract of sale or purchase is made ; and

(ii) in the case of unascertained or future goods, at the time of their appropriation to the contract of sale or purchase by the seller or by the purchaser, whether the assent of the other party is prior or subsequent to such appropriation;

(b) Where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of Clause (a) shall apply as if there were separate contracts in respect of the goods at each of such places.

Explanation III:- Notwithstanding anything contained in the Act or in the Indian Sale of Goods Act, 1930 (Central Act III of 1930), two independent sales or purchases shall for the purposes of the Act, be deemed to have taken place,-

(1) When the goods are transferred from a principal to his selling agent and from the selling agent to his purchaser, or

(2) When the goods are transferred from the seller to a buying agent and from the buying agent to his principal, if the agent is found in either of the cases aforesaid,-

(i) to have sold the goods at one rate and to have passed on the sale proceeds to his principal at another rate ; or

(ii) to have purchased the goods at one rate and to have passed them on to his principal at another rate ; or

(iii) not to have accounted to his principal for the entire collections or deductions made by him, in the sales or purchases effected by him on behalf of his principal ; or

(iv) to have acted for a fictitious or non-existent principal.

Explanation IV:- A transfer of right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration shall be deemed to be a sale.

Explanation V:- Notwithstanding anything contained in the Act or in the Indian Sale of Goods Act, 1930 (Central Act III of 1930) the sale of goods includes the supply, by way of or as part of any service or in any manner whatsoever, of goods, being food or other article for human consumption or any drink (whether or not intoxicating) where such supply or service, is for cash, deferred payment or other valuable consideration and such supply of any goods shall be deemed to be a sale of those goods by the person making the supply of those goods to the person to whom such supply is made.

Explanation VI:- Wherever any goods are supplied or used in the execution of a works contract, there shall be deemed to be a transfer of property in such goods, whether or not the value of the goods so supplied or used in the course of execution of such works contract is shown separately and whether or not the value of such goods or material can be separated from the contract for the service and the work done.

Explanation VII:- Notwithstanding anything contained in the Indian Sale of Goods Act, 1930 (Central Act III of 1930), a sale or purchase of goods shall, for the purposes of the Act be deemed to have taken place where in the course of any scheme whether called as "Lucky Gift Scheme" or by any other name, any goods are transferred by the person who runs such scheme to any other person who is a subscriber to that scheme, provided that all the subscribers to the scheme have agreed to contribute a specific sum periodically or otherwise, towards the cost of any article agreed to be sold or given to the winner of the draw held by the holder of the scheme; and the turnover for the purpose of this explanation shall be the amount which would have been payable by the subscriber had he not won the prize till the end of the series of draw;

Explanation VIII:- Every transfer of property in goods by the Central Government or the State Government for cash or for deferred payment or for any other valuable consideration, whether or not in the course of business shall be deemed to be a sale for the purpose of the Act;

(29) 'Sale Price' means-

(a) the total amount set out in the tax invoice or bill of sale; or

(b) the total amount of consideration for the sale or purchase of goods as may be determined by the assessing authority, if the tax invoice or bill of sale does not set out correctly the amount for which the goods are sold; or

(c) if there is no tax invoice or bill of sale, the total amount charged as the consideration for the sale or purchase of goods by a VAT dealer or TOT dealer either directly or through another, on his own account or on account of others, whether such consideration be cash, deferred payment or any other thing of value and shall include;

(i) the value of any goods as determined by the assessing authority,-

(a) to have been used or supplied by the dealer in the course of execution of the works contract; or

(b) to have been delivered by the dealer on hire purchase or any other system of payment by instalments; or

(c) to have been supplied or distributed by a society including a Co-operative Society, Club, firm or association to its members, where the cost of such goods is not separately shown or indicated by the dealer and where the cost of such goods is separately shown or indicated by the dealer, the cost of such goods as shown or indicated;

(ii) any other sum charged by the dealer for anything done in respect of goods sold at the time of, or before, the delivery of the goods;

(iii) any other sum charged by the dealer, whatever be the description, name or object thereof;

Explanation I:- Subject to such conditions and restrictions, if any, as may be prescribed in this behalf, any cash or other discount on the price allowed in respect of any sale and any amount refunded in respect of articles returned by customers shall not be included in the sale price;

Explanation II:- For the purpose of determination of sale price and levy of Value Added Tax, the Value Added Tax charged or chargeable shall not form part of Sale Price;

[Explanation III:- For the purpose of determination of sale price of Foreign Liquor imported by the Andhra Pradesh Beverages Corporation Limited and levy of Value Added Tax, the 'Customs Duty' charged or chargeable under the Customs Act, 1962 shall not form part of the sale price.]

(30) 'Schedule' means a Schedule appended to the Act;

[(30A) 'SEZ' means Special Economic Zone as define under the Special Economic Zones Act, 2005 ( Central Act 28 of 2005)]

(31) 'Special Rate of Tax' means the Rates of tax specified in Schedule VI.

(32) 'State' means the State of Andhra Pradesh.

(33) 'State Representative' means an officer of the Commercial Taxes Department not below the rank of Assistant Commissioner appointed by the State Government to receive on their behalf notices issued by the Appellate Tribunal and generally to appear, act and plead on their behalf in all proceedings before the Appellate Tribunal and includes an officer authorized to act on his behalf in his absence;

(34) 'Tax' means a tax on the sale or purchase of goods payable under the Act and includes,-

(a) a tax on the transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;

(b) a tax on the transfer of property in goods whether as goods or in some other form involved in the execution of a works contract;

(c) a tax on the delivery of goods on hire purchase or any system of payment by instalments;

(d) a tax on the transfer of the right to use any goods for any purpose whether or not for a specified period for cash, deferred payment or other valuable consideration;

(e) a tax on the supply of goods by any un-incorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;

(f) a tax on the supply, by way of or as part of any service or in any other manner whatsoever of goods, being food or any other article for human consumption or any drink whether or not intoxicating, where such supply or service is for cash, deferred payment or other valuable consideration;

(35) 'Tax invoice' means a sale invoice containing such details as may be prescribed and issued by a VAT dealer to another VAT dealer;

(36) 'Tax period' means a calendar month or any other period as may be prescribed;

(37) 'Taxable Sale' means a sale of goods taxable under the Act and under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) and shall include sale of any goods exported outside the territory of India or sold in the course of export;

(38) 'Taxable turnover' means the aggregate of sale prices of all taxable goods;

Explanation I:- For the purpose of a VAT dealer, it shall not include the amount of VAT paid or payable, but shall include the sale price of zero-rated sales.

Explanation II:- The sale price relating to second and subsequent sale of goods specified in Schedule VI shall not form part of taxable turnover;

[Explanation III:- The sale price, relating to loose liquor, served

to customer in a bar/restaurant which was derived from the goods enumerated in item 1 of the Schedule-VI, on which tax at special rates has been levied and paid in the State, shall not form part of the taxable turnover.]

[(39) 'Total turnover' means the aggregate of sale prices of all goods, taxable and exempted, sold at all places of business of the dealer in the State, whether directly by himself for through his agent or agents, including the turnover of sales involved in the transactions falling under sections 3,5,6A and 8(6) of the Central Sales Tax Act, 1956 and shall also include the gross consideration received or receivable towards execution of works contract.]

(40) 'Turnover tax' or TOT means a tax on the taxable turnover of dealers registered or liable to be registered for TOT;

(41) 'Turnover Tax Dealer' or TOT dealer means any dealer who is registered or liable to be registered for TOT;

(42) 'VAT' means Value Added Tax on sales, levied under the provisions of the Act;

(43) 'VAT dealer' means a dealer who is registered for VAT;

(44) 'Vessel' includes any ship, barge, boat, raft, timber, bamboos or floating materials propelled in any manner;

(45) 'Works Contract' includes any agreement for carrying out for cash or for deferred payment or for any other valuable consideration, the building construction, manufacture, processing, fabrication, erection, installation, laying, fitting out, improvement, modification, repair or commissioning of any movable or immovable property;

(46) 'Year' means the twelve-month period ending on the thirty first day of March;

(47) 'Zero rated Sales' for the purpose of the Act, means a sale of goods in the course of inter-State trade or commerce, exports to outside the territory of India including sale in the course of export and sale of goods to any unit located in Special Economic Zone as may be notified.

CHAPTER II

Appellate Tribunal And Appointment Of Officers

3. Appellate Tribunal:-(1) The Government shall appoint an Appellate Tribunal consisting of a Chairman and two other members to exercise the functions conferred on the Appellate Tribunal by or under the Act. The Chairman shall be a judicial officer not below the rank of a [District Judge Super Time Scale/District Judge Selection Grade]and of the other two members, one shall be an officer of the State Government not below the rank of a Joint Commissioner of Commercial Taxes, and the other shall be an officer of the Indian Revenue Service not below the rank of an Additional Commissioner.

(2) Any vacancy in the membership of the Appellate Tribunal shall be filled up by the Government.

(3) Notwithstanding anything contained in sub-section (1), the Government may at any time, by order, constitute an additional Bench of the Tribunal, consisting of a Chairman who shall be a [District Judge Super Time Scale/District Judge Selection Grade] and two members of whom one shall be an Officer of the State Government not below the rank of a Joint Commissioner of Commercial Taxes and the other shall be an officer of the Indian Revenue Service not below the rank of an Additional Commissioner to function at such place and for such period as may be specified therein.

(4) Where any orders passed by the Benches specified in sub-sections (1) and (3) are in conflict with each other on same issue the senior Chairman of the two Benches, on application or suo-moto shall constitute and preside over a Full Bench of not less than five members in the manner specified in the regulations made under sub-section (5) and the decision of such bench shall be final.

(5) The Appellate Tribunal shall, with the previous sanction of the Government make regulations consistent with the provisions of the Act and rules made thereunder, for regulating its procedure and the disposal of its business. Such regulations shall be Published in the Andhra Pradesh Gazette.

[(6)(a) The functions of the Appellate Tribunal may be exercised,]-

(i) by a Bench consisting of all the members of the Appellate Tribunal ; or

(ii) by a Bench consisting of two members constituted by the Chairman; or

(iii) by a Bench consisting of the Chairman and another member as constituted by the Chairman ; or

(iv) by a Bench consisting of the other two members in case the Chairman is absent or on leave or transfer or in case of the office of the Chairman is vacant otherwise ; or

(v) by a single member of the Appellate Tribunal constituted by the Chairman in cases where the turnover does not exceed rupees five lakhs :

Explanation:- The single member referred to in item (v) above may be either the Chairman himself or any other member.

(b) where an appeal or application is heard by all the three members of the Appellate Tribunal, and the members are divided in opinion, on any point or points such point or points shall be decided in accordance with the opinion of the majority;

(c) where an appeal or application is heard by a Bench consisting of two members whether it consists of the Chairman or not, and the members are divided in opinion, on any point or points, such point or points shall be referred to the Appellate Tribunal consisting of all the three members;

(d) if any case which comes up before a single member (who is not the Chairman) or a Bench (of which the Chairman is not a member) involves a question of law, such single member or Bench may in his or its discretion, reserve such case for decision by a Bench of which the Chairman shall be a member.

3A. Appointment of Officers:- The State Government, may, appoint a Commissioner of Commercial Taxes and as many Additional Commissioners of Commercial Taxes, Joint Commissioners of Commercial Taxes, Appellate Deputy Commissioners of Commercial Taxes, Deputy Commissioners of Commercial Taxes, Assistant Commissioners of Commercial Taxes, Commercial Tax Officers and Deputy Commercial Tax Officers as they think fit, for the purpose of performing the functions respectively conferred on them by or under the Act. Such officers shall perform the said functions within such area or areas or the whole of the State of Andhra Pradesh as the Government or any authority or officer empowered by them in this behalf may assign to them.

CHAPTER III

Incidence, Levy And Calculation of Tax

4. Charge to tax:- (1) Save as otherwise provided in the Act, every dealer registered or liable to be registered as a VAT dealer shall be liable to pay tax on every sale of goods, in the State at the rates specified in the Schedules.

[(2) Every dealer, who has not opted for registration as a Value Added Tax dealer and who is registered or liable to be registered for Turnover Tax, shall pay tax at the rate of one percent (1%) on the taxable turnover in such manner as may be prescribed.]

(3) Every VAT dealer shall pay tax on every sale of goods taxable under the Act on the sale price at the rates specified in the Schedules III, IV and V, subject to the provisions of Section 13.

(4) Every VAT dealer, who in the course of his business purchases any taxable goods from a person or a dealer not registered as a VAT dealer or from a VAT dealer in circumstances in which no tax is payable by the selling VAT dealer, shall be liable to pay tax at the rate of [five per cent (5%)] on the purchase price of such goods, if after such purchase, the goods are

(i) used as inputs for goods which are exempt from tax under the Act, or

(ii) used as inputs for goods, which are disposed of otherwise than by way of sale in the State or dispatched outside the State otherwise than by way of sale in the course of inter-State trade and commerce or export out of the territory of India; or

(iii) disposed of otherwise than by way of consumption or by way of sale either within the State or in the course of interstate trade or commerce or export out of the territory of India:

[Provided that wherever a common input is used to produce goods, the turnover, taxable under this sub-section, shall be the value of the inputs, proportionate to the value of the goods, used or disposed of in the manner as prescribed under this section:

Provided further that in respect of purchase of goods specified in Schedules and VI, the VAT dealer shall be liable to pay tax at the rates specified for such goods in the respective Schedules.]

(5) Every dealer shall pay tax on the sale price of goods specified in Schedule VI at the special rates and at the point of levy specified therein;

(6) Every casual trader who sells goods within the State and any dealer covered under Explanation HI and IV of Clause (10) of Section 2 shall pay tax on the sale price of such goods at the rates specified in the respective Schedules.

(7) Notwithstanding anything contained in the Act:-

(a) every dealer executing works contract shall pay tax on the value of goods at the time of incorporation of such goods in the works executed at the rates applicable to the goods under the Act:

Provided that where accounts are not maintained to determine the correct value of goods at the time of incorporation, such dealer shall pay tax at the rate [specified in Schedule-V] on the total consideration received or receivable subject to such deductions as may be prescribed;

[(b) Every dealer executing works contract may in lieu of the amount of tax payable by him under clause (a) opt to pay by way of composition at the rate of] [5%] of the total amount received or receivable by himself towards execution of the works contract either by himself or through sub-contractor subject to such conditions as may be prescribed:

Provided that the sub-contractor, executing works contract on behalf of the contractor, who opts to pay tax under this clause, shall be exempted from levy of tax.];

(c)[xxx] ;

"[(d) Every dealer engaged in construction and selling of residential apartments, houses, buildings or commercial complexes may, in lieu of the amount of tax payable by him under clause (a) opt to pay tax by way of composition at the rate of], [5%] on twenty five percent (25%) of the amount, received or receivable towards the composite value of both the land and building or the market value fixed therefor for the purpose of stamp duty, whichever is higher, subject to such conditions as may be prescribed."

Provided that no tax shall be payable by the sub-contractor of a works contractor, who opts to pay and paid tax under this clause on the turnover relating to the amount received as a sub-contractor from such main contractor towards the execution of works contract, whether wholly or partly, subject to the production of evidence to prove that such main contractor has exercised such option in respect of the specific work and subject to such other conditions as may be prescribed;

[xxx];

(f)[any dealer registered or is liable to be registered] for TOT and executing any works contracts shall pay tax at the rate of 1% on total value of the goods at the time of incorporation of the goods used :

Provided that where accounts are not maintained to determine the correct value of the goods at the time of incorporation, such dealers shall pay tax at the rate of 1% on the total consideration received or receivable subject to such deductions as may be prescribed.

[xxx]

[(g) notwithstanding anything contained in clauses (a) to (f) above, no tax shall be leviable on the turnover of transfer of property in goods whether as goods or in some other form involved in the execution of works contract, if such transfer from the contractor to the contractee constituted a sale in the course of interstate trade or commerce under Section 3 or a sale outside the State under Section 4, or a sale in the course of import or export under Section 5 of the Central Sales Tax Act, 1956];

(h) no tax shall be payable under [clause (a)] of this sub-section on the turnover relating to amounts paid to a sub-contractor as consideration for the execution of works contract whether wholly or partly subject to the production of proof that such sub¬contractor is registered as a VAT dealer under the Act and the turnover of such amount is included in the return prescribed filed by such sub-contractor.

(i)[xxx]

(8) Every VAT dealer who transfers the right to use goods taxable under the Act for any purpose, whatsoever, whether or not for a specified period, to any lessee or licensee for cash, deferred payment or other valuable consideration, in the course of his business shall, on the total amount realized or realizable by him by way of payment in cash or otherwise on such transfer of right to use such goods from the lessee or licensee pay a tax for such goods at the rates specified in the Schedules.

[(8A) Notwithstanding anything contained in sub section (8), a producer of a feature film, who transfers the right to use the film to the distributors or the exhibitors for the purpose of exhibiting such films in the theatres, may opt to pay tax by way of composition as may be prescribed.

Explanation:- Wherever tax is paid under sub-section (8A) by any producer in respect of any film, the subsequent transfer of right to use such film for exhibition in the theatre shall not be liable to tax under sub-sections (8) and (8A)]

[(8B) any dealer other than the producer of a feature film may,] in lieu of the tax payable by him under sub-section(8), opt to pay by way of composition an amount of tax at the rate of [5%] of the total amount, received or receivable by him towards transfer of right to use any goods subject to the conditions, as may be prescribed.

Provided that, wherever the tax is paid under this sub-section, the subsequent transfer of right to use such goods shall not be liable to tax under sub-section (8)

[(9) Notwithstanding anything contained in this Act, every dealer, running any Restaurant or Eating House or Club or Hotel or a Caterer, by whatever name called, who supplies, indoor or outdoor by way of or as part of any service or in any other manner whatsoever of goods, being food or any other article for human consumption or any drink, where such supply or service is for cash, deferred payment or other valuable consideration, shall pay a tax at the rate of five per cent (5%), on the taxable turnover.]

Explanation:- For the purposes of the computing the total turnover under this sub-section, the sales turnover of all business units in common premises sharing the common kitchen or common employees shall be added to the sales turnover of the business unit having higher turnover.

[(10) (a) Notwithstanding anything contained in the Act or any other law for the time being in force, every person who, for an agreed commission brokerage, buys or sells on behalf of any principal who is a resident of the State shall be liable to tax under this Act at the rate or rates leviable thereunder in respect of such purchase or sale, notwithstanding that such principal is not a dealer or that the turnover of purchase or sale relating to such principal is less than the minimum specified in sub¬sections (2), (3) and (4) of section 17;]

[Provided that the agent selling agricultural produce on behalf of the agriculturist principal, shall be exempted from payment of tax subject to such conditions as may be prescribed.]

(b) The principal shall not be liable to tax on his turnover in respect of which the agent is liable to tax under clause (a) and the burden of proving that the turnover has been subjected to tax at the hands of his agent under the said clause shall be on such principal.

[(11) Every dealer, who is engaged in the integrated activity of printing and supplying the printed materials may, in lieu of the amount of tax payable under the Act,] opt to pay by way of composition an amount of tax at the rate of [5%] on sixty percent (60%) of the total value of such supplies received or receivable, irrespective of the fact whether such supplies involve sale or works contract or job work subject to such conditions as may be prescribed.

5. Act not to apply to sales or purchases outside the State, in the course of import or export, etc.:-Nothing contained in the Act shall be deemed to impose or authorise the imposition of a tax on the sale or purchase of any goods, where such sale or purchase takes place,-

(a) outside the State; or

(b) in the course of the import of the goods into, or export of the goods out of the territory of India; or

(c) in the course of inter-State trade or commerce.

Explanation:- The provisions of Chapter H of the Central Sales Tax Act, 1956 (Central Act 74 of 1956), shall apply for the purpose of determining when a sale or purchase takes place in the course of inter-State trade or commerce or outside a State or in the course of import or export.

6. Tax on packing material:-Where goods sold or purchased are contained in containers or are packed in any packing material liable to tax under the Act, the rate of tax applicable to such containers or packing material shall, whether the price of the containers or packing material is charged for separately or not, be the same as the rate of tax applicable to such goods so contained or packed, and where such goods sold or purchased are exempt from tax under the Act, the containers or packing material shall also be exempted.
7. Exemptions:-The goods listed in Schedule I to the Act shall be exempt from tax under the Act.

[7A. Exemption of Tax on sale of goods for certain purposes to an unit located in any Special Economic Zone:- Notwithstanding any thing contained in this Act, no tax under this Act shall be payable by any dealer in respect of sale of any goods made by such dealer to a registered dealer for the purpose of setting up operation, maintenance, manufacture, trading, production, processing, assembling, repairing, reconditioning, re-engineering, packaging or for use as packing material or packing accessories in an unit located in any Special Economic Zone or for development, operation and maintenance of Special Economic Zone by the developer of the Special Economic Zone, if such registered dealer has been authorised to establish such unit or to develop, operate and maintain such Special Economic Zone by the authority specified by the Central Government in this behalf.]

8. Zero-rated sales:– Subject to the conditions in Sections 9 and 13 of the Act, the following shall be zero-rated sales for the purpose of the Act and shall be eligible for input tax credit,–

(a) Sale of taxable goods in the course of inter-state trade and commerce falling within the scope of Section 3 of the Central Sales Tax Act, 1956;

(b) Sale of goods falling within the scope of sub sections (1) and (3) of Section 5 of the Central Sales Tax Act, 1956;

(c) [xxx]

9. Input tax credit for dealers for goods in Schedule VI:–Every dealer, who is liable to pay tax on the sale of goods specified in Schedule VI, shall be eligible for input tax credit subject to the conditions in Section 13 of the Act and in the manner prescribed.
10. Turnover tax:–(1) Any dealer who is not registered or does not opt to be registered as VAT dealer shall not be entitled to claim input tax credit for any purchase, and shall not be eligible to issue a tax invoice.

(2) Any dealer who is registered as a VAT dealer shall not be liable to Turnover Tax from the effective date of such registration.

11. Calculation of Tax payable:-(1) Subject to sub-section (2), the VAT payable on a sale liable to VAT shall be calculated by applying the rate of tax specified in the Schedules, on the sale price of goods.

(2) Where the sale price of goods is inclusive of VAT, the amount of VAT shall be determined in accordance with the formula prescribed.

(3) Where a dealer is liable to pay turnover tax under sub-section (2) of Section 4, the tax shall be calculated by applying the rate of Turnover Tax specified therein on the taxable turnover.

12. VAT payable:-The VAT payable by a VAT dealer or VAT credit or refund due to a VAT dealer for a tax period shall be calculated in accordance with the formula prescribed.
13. Credit for input tax:-(1) Subject to the conditions if any, prescribed, an input tax credit shall be allowed to the VAT dealer for the tax charged in respect of all purchases of taxable goods, made by that dealer during the tax period, if such goods are for use in the business of the VAT dealer. No input tax credit shall be allowed in respect of the tax paid on the purchase of goods specified in Schedule VI.

(2)(a) A dealer registered as a VAT dealer on the date of commencement of the Act, shall be entitled to claim for the sales tax paid under APGST Act, 1957 (Act VI of 1957) [on the stock held in any form in the State] on the date of commencement of the Act subject to the conditions and in the manner as may be prescribed:

Provided that such goods should have been purchased from 1.4.2004 to 31-03-2005 and are goods eligible for input tax credit.

(b) Subject to the conditions if any, prescribed, input tax credit shall be allowed to a VAT dealer on registering as VAT dealer if any input tax is paid or payable in respect of all purchases of taxable goods, where such goods are for use in the business as VAT dealer, provided the goods are in stock on the effective date of registration and such purchase occurred not more than three months prior to such date of registration.

(3) A VAT dealer shall be entitled to claim,-

(a) input tax credit under sub-section (1), on the date the goods are received by him, provided he is in possession of a tax invoice;

(b) input tax credit or sales tax credit under sub-section (2), on the date of registration, provided he is in possession of documentary evidence therefor.

(4) A VAT dealer shall not be entitled for input tax credit or sales tax credit in respect of the purchases of such taxable goods as may be prescribed.

(5) No input tax credit shall be allowed on the following:

(a) Works contracts where the VAT dealer pays tax under the provisions of clauses (b),[xxx] and (d) of sub-section (7) of Section 4;

(b) transfer of a business as a whole;

(c) sale of exempted goods except when such goods are sold in the course of export or exported outside the territory of India;

(d) exempt sale;

(e) Transfer of exempted goods on consignment basis or to branches of the VAT dealer outside the State otherwise than by way of sale;

[(f) the purchase of any goods by an agent for supply of such goods to his resident principal]

[(g) the transactions on which VAT dealer pays tax under sub-section] (8A) [or sub-section (8B)] of Section 4 of the Act;

[(h) the supply or sale of goods, on which a VAT dealer pays tax under sub-section (9) of Section 4 of the Act.]

[(i) transactions on which tax is paid or payable under sub-section(11) of Section 4.]

[(5A) Notwithstanding anything contained in sub-section (5), the resident principal, who receives the goods purchased on his behalf by his agent, is eligible to claim input tax credit on such goods subject to the possession of a declaration in the Form, as may be prescribed.]

(6) The input tax credit for transfer of taxable goods outside the State by any VAT dealer otherwise than by way of sale shall be allowed for the amount of tax in excess of [5%].

(7) Where any VAT dealer pays tax under clause (a) of sub-section (7) of Section 4, the input tax credit shall be limited to [75%] of the related input tax.

(8) Where goods purchased by a VAT dealer are partly for his business use and partly for other than his business use, the amount of the input tax credit shall be limited to the extent of input tax that relates to the goods used in his business.

(9) A Turnover Tax dealer or a casual trader shall not be entitled to claim input tax credit.

(10) Any dealer covered by Explanations III & IV of clause (10) of Section 2 shall not be eligible for input tax credit against or relatable to sale of un-serviceable goods or scrap, surplus, old, obsolete or discarded material or waste products whether by auction or otherwise.

(11) Any VAT dealer who purchases any taxable goods from a dealer covered under sub-section (10) above, shall be eligible for input tax credit, on production of documentary evidence that tax has been charged.

14. Tax invoices:-A VAT dealer making a sale liable to tax to another VAT dealer shall issue at the time of sale, a tax invoice in such form as may be prescribed.
15. Power of State Government to grant refund of tax:-(1) The Government may, if it is necessary so to do in the Public interest and subject to such conditions as it may impose, by a Notification, provide for grant of refund of tax paid to any person, on the purchases effected by him and specified in the said Notification.

(2) Any Notification under sub-section (1) may be issued so as to be retrospective to any day not earlier than the appointed day and such Notification shall take effect from the date of its Publication in the Gazette or such other earlier or later date as may be mentioned therein.

(3) An application for refunds shall be made in duplicate to the Commissioner within a period of six months from the date of purchase or as the Government may prescribe in the notification and it shall be accompanied by the purchase invoice in original.

16. Burden of proof:- (1) The burden of proving that any sale or purchase effected by a dealer is not liable to any tax or is liable to be taxed at a reduced rate or eligible for input tax credit shall lie on the dealer.

(2) Where a dealer issues or produces a false bill, voucher, declaration, certificate or other document with a view to support or make any claim that a transaction of sale or purchase effected by him or any other dealer, is not liable to tax or liable to be taxed at a reduced rate, or eligible for input tax credit is guilty of an offence under Section 55 of the Act.

CHAPTER IV

Registration

17. Registration of Dealers:- (1) Every dealer other than a casual trader shall be liable to be registered in accordance with the provisions of the Act.

(2) Every dealer commencing business and whose estimated taxable turnover for twelve consecutive months is more than [Rs.50,00,000/- (Rupees fifty lakhs only)] shall be liable to be registered as a VAT dealer before the commencement of business.

[(3) Every dealer whose taxable turnover in the twelve preceding months exceeds], [Rs.50,00,000/- (Rupees fifty lakhs only)] shall be registered as a Value Added Tax dealer.

(4) Every dealer whose taxable turnover during the period from 1st January 2004 to 31st December 2004 is more than Rs.40,00,000 (Rupees forty lakhs only), shall be liable to be registered as a VAT dealer.

(5) Notwithstanding anything contained in sub-sections (2), (3) and (4), the following classes of dealers shall be liable to be registered as VAT dealers irrespective of their taxable turnover namely,-

(a) every dealer importing goods in the course of business from outside the territory of India;

(b) every dealer registered or liable to be registered under the Central Sales Tax Act, 1956 (Central Act 74 of 1956), or any dealer making purchases or sales in the course of inter-state trade or commerce or dispatches any goods to a place outside the State otherwise than by way of sale;

(c) every dealer residing outside the State but carrying on business within the State and not having any permanent place of business;

(d) every dealer liable to pay tax on goods listed in Schedule VI.

(e) every commission agent, broker, delcredere agent, auctioneer or any other mercantile agent by whatever name called, who carries on the business of buying, selling, supplying or distributing goods [on behalf of any principal or principals.] [except the agent, selling agricultural produce on behalf of agriculturist principals.]

(f) every dealer availing sales tax deferment or sales tax holiday;

(g) every dealer executing any works contract exceeding [Rs.7,50,000/- (Rupees seven lakhs and fifty thousand only)] for the Government or local authority or every dealer opting to pay tax by way of composition on works contract.

[(h) every dealer liable to pay tax under sub-section (9) of Section 4 of the Act.]

[(i)every dealer opting to pay tax under sub-section (8A) of Section 4.]

(6)(a) any dealer effecting sale of goods liable to tax under the Act and who is not otherwise liable to register may also opt for registration as a VAT dealer and such registration shall be subject to such conditions as may be prescribed;

(b) any dealer intending to effect sale of goods liable to tax under the Act, and who is not otherwise liable to register, may also opt for registration as a VAT dealer and such registration shall be subject to such conditions as may be prescribed.

(7) Every dealer not registered or not liable for registration as VAT dealer and who sells any goods and has a taxable turnover exceeding [Rs. 7,50,000/- (Rupees seven lakhs and fifty thousand only)] in a period of twelve consecutive months or has reason to believe that his taxable turnover in a period of twelve consecutive months will exceed [Rs.7,50,000/- (Rupees seven lakhs and fifty thousand only)], shall apply for registration as TOT dealer in the manner prescribed.

(8) Subject to the provisions contained in sub-section (5), every dealer who held a registration certificate under the Andhra Pradesh General Sales Tax Act, 1957 shall be deemed to be registered as TOT dealer under the Act provided the dealer had a taxable turnover exceeding Rs.5,00,000/- (Rupees five lakhs only) but below Rs.40,00,000/- (Rupees forty lakhs only) during the period from 1st January, 2004 to 31st December, 2004 and had not discontinued his business or his Registration Certificate had not been cancelled during that period.

(9) Where a registered dealer dies or transfers or otherwise disposes of his business in whole, the successor or the transferee, unless already in possession of registration shall be liable to be registered under the Act.

(10) An application for registration shall be made to the authority prescribed, in such manner and within such time as may be prescribed.

(11) If the authority to whom an application is made under sub-section (10) is satisfied that the application is bonafideand is in order and in conformity with the provisions of the Act and the rules made thereunder, he shall register the applicant and grant him a certificate of registration in the prescribed form.

18. Tax payer Identification Number and General Registration Number:-(1) The authority prescribed shall issue a registration identification number known as:

(a) Taxpayer Identification Number (TIN) to a dealer registered as VAT dealer;

(b) General Registration Number (GRN) to a dealer registered as TOT dealer.

(2) Every VAT dealer or TOT dealer who is allotted a Taxpayer Identification Number (TIN) or General Registration Number (GRN) shall indicate such number on all returns, forms, tax invoices or any other documents used for the purposes of the Act.

19. Cancellation & Amendment of Registration:- (1) Any VAT dealer or TOT dealer registered under Section 17 of the Act shall apply for cancellation or amendment of registration, in such circumstances as may be prescribed.

(2) The authority prescribed may, for good and sufficient reasons cancel, modify or amend any certificate of registration issued by him:

Provided that no order shall be passed under this sub-section without giving the dealer a reasonable opportunity of being heard.

CHAPTER V

Procedure And Administration of Tax

Returns and Assessments

20. Returns & Self Assessments:- (1) Every dealer registered under Section 17 of the Act, shall submit such return or returns, along with proof of payment of tax in such manner, within such time, and to such authority as may be prescribed.

(2) If a return has been filed within the prescribed time and the return so filed is found to be in order, it shall be accepted as self-assessment subject to adjustment of any arithmetical error apparent on the face of the said return.

(3)(a) Without prejudice to the powers of the authority prescribed, under sub-section (3) of Section 21, every return shall be subject to scrutiny to verify the correctness of calculation, application of correct rate of tax and input tax credit claimed therein and full payment of tax payable for such tax period.

(b) If any mistake is detected as a result of such scrutiny made as specified in clause (a), the authority prescribed shall issue a notice of demand in the prescribed form for any short payment of tax or for recovery of any excess input tax credit claimed.

(4) Every dealer shall be deemed to have been assessed to tax based on the return filed by him, if no assessment is made within a period of four years from the date of filing of the return.

21. Assessments:- (1) Where a VAT dealer or TOT dealer fails to file a return in respect of any tax period within the prescribed time, the authority prescribed shall assess the dealer for the said period for such default in the manner prescribed.

(2) If a VAT dealer or TOT dealer submits a return along with evidence for full payment of tax, subsequent to the prescribed time the assessment made under sub-section (1) may be withdrawn without prejudice to any interest or penalty leviable.

(3) Where the authority prescribed is not satisfied with a return filed by the VAT dealer or TOT dealer or the return appears to be incorrect or incomplete, he shall assess to the best of his judgement within four years of due date of the return or within four years of the date of filing of the return whichever is later.

(4) The authority prescribed may, based on any information available or on any other basis, conduct a detailed scrutiny of the accounts of any VAT dealer or TOT dealer and where any assessment as a result of such scrutiny becomes necessary, such assessment shall be made within a period of four years from the end of the period for which the assessment is to be made.

(5) Where any willful evasion of tax has been committed by a dealer, an assessment shall be made to the best of his judgement by the authority prescribed within a period of six years of date of filing of the return or the first return relating to such offence.

(6) The authority prescribed may reassess, where an assessment was already made under sub-sections (1) to (5) and such assessment understates the correct tax liability of the dealer within a period of four years from the date of such assessment.

[(7) Where an assessment has been deferred by the Commissioner under sub-section (5) of Section 32 or as the case may be, by the Appellate Tribunal under the proviso to sub-section (4) of Section 33 on account of any stay granted by the Appellate Tribunal, or as the case may be the Andhra Pradesh High Court or Supreme Court respectively, or whereas appeal or other proceedings is pending before the Appellate Tribunal or the High Court or Supreme Court involving a question of law having a direct bearing on the assessment in question, the period during which the stay order was in force or such appeal or proceedings was pending shall be excluded in computing the period of four years or six years as the case may be for the purpose of making the assessment.]

(8) Where an assessment made has been set aside by [any Court or as the case may be the Appellate Tribunal] the period between the date of such assessment and the date on which it has been set aside shall be excluded in computing the period of four years or six years as the case may be, for making any fresh assessment.

Payment and Recovery of Tax

22. Due date for payment of Tax:- (1) The tax payable in respect of a tax period along with a return and the tax assessed under the Act shall be payable in such manner and within such time as may be prescribed.

(2) If any dealer fails to pay the tax due on the basis of return submitted by him or fails to pay any tax assessed or penalty levied or any other amount due under the Act, within the time prescribed or specified therefor, he shall pay, in addition to the amount of such tax or penalty or any other amount, [interest calculated at the rate of one and quarter (1.25%) percent per month] for the period of delay from such prescribed or specified date for its payment. The interest in respect of part of a month shall be computed proportionately and for this purpose, a month shall mean a period of 30 days.

[(3) The Central Government or the State Government or an industrial, commercial or trading undertaking of the Central Government or of the State Government or a local authority or a statutory body or a company registered under the Companies Act, 1956 or any other person notified by the Commissioner, shall deduct from out of the amounts payable by them to a dealer in respect of works contract executed for them, an amount calculated at such rate as may be prescribed and such contractee deducting tax at source shall remit such amount in the manner prescribed]:

Provided that no deduction shall be made from any amounts paid as consideration to any sub-contractor if tax was already deducted by the contractee.

[(3A) Notwithstanding any thing contained in sub-section 93), in the case of a dealer, executing works contract for Government or Local Authority, wherever tax at the rate of] [5%] is added separately to the estimated value of the contract, such tax shall be collected by the contractee and remitted in the manner as may be prescribed.

[(3B) Every Film Processing Laboratory by whatever name it is called shall collect tax at source a t the rates as may be prescribed for this purpose, from the film producers opting for payment of tax under sub-section (8A) of section 4 and remit the tax so collected on the immediate next working day from the date of such collection in the manner as may be prescribed.]

(4) Any authority or person deducting any sum in accordance with [sub-section (3) or sub-section (3-A) or sub-section (3-B)], shall pay within the prescribed time, the sum so deducted to the credit of the State Government. If the authority or the person does not deduct or after deducting fails to pay tax as required by this section, he shall be deemed to have not paid the tax within the time under the provisions of the Act. In such case all the provisions of the Act including the provisions relating to interest shall apply mutatis mutandis to such unpaid tax.]

(5) Where a VAT dealer paid entry tax on any goods under Andhra Pradesh Entry Tax on Motor Vehicles into Local Areas Act, 1996 (Act 26 of 1996) and Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001 (Act 40 of 2001), such amount shall be adjusted against VAT payable provided the credit for input tax is not restricted under [xxx] Section 13 of the Act.

(6)(a) The Deputy Commissioner, on an application made by a VAT dealer or any other dealer, permit the payment of any tax, penalty or other amount due under the Act in such instalments within such intervals and subject to such conditions, as he may specify in the said order, having regard to the circumstances of each case;

(b) Where such payment in instalments is permitted, the dealer shall pay in addition to such tax, penalty, instalment or other amount, [interest calculated at the rate of one and quarter (1.25%) percent per month] for the amount for the period from the date specified for its payment on the instalments so permitted.

(7) [xxx]

23. Liability of executor, administrator, legal representative:-(1) Where any dealer doing business in respect of which tax is payable under the Act, is dead, the Executor, Administrator, Successor in title or other legal representative of the deceased dealer shall, in respect of such business, be liable to submit the returns due under the Act and to assessment under Section 21 and to pay out of the estate of the deceased dealer, the tax, interest and any penalty assessed or levied as payable by the deceased dealer.

(2) The provision relating to appeals and revisions shall be applicable to assessment made under sub-section (1) as if the Executor, Administrator, Successor in title or other legal representative were himself the dealer.

(3) The provisions of sub-sections (1) and (2) shall apply mutatis mutandis to a partnership firm of which the managing partners have died.

24. Liability of partnership firms:- (1) Where any firm is liable to pay any tax or other amount under the Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment.

(2) Where any business carried on by a firm or a Hindu Undivided Family or an Association has been discontinued or dissolved, the authority prescribed shall make an assessment on the taxable turnover and determine the tax payable as if no such discontinuance or dissolution had taken place and all the provisions of the Act including provisions relating to levy of penalty or any other amount payable under any of the provisions of the Act shall apply, to such assessment.

(3) Every person who was at the time of such discontinuance or dissolution, a partner of the firm, or a member of such Hindu Undivided Family or Association and the legal representative of any such person who is deceased, shall be jointly and severally liable for the amount of tax, penalty or any other amount payable, and all the provisions of the Act shall apply to any such assessment or levy of penalty or any other amount.

(4) Where such discontinuance or dissolution takes place after any proceedings in respect of any year have commenced, the proceedings may be continued against the VAT dealer or TOT dealer referred to in sub-section (2) from the stage at which such proceedings stood at the time of such discontinuance or dissolution and all the provisions of the Act shall apply accordingly.

(5) When any private company is wound up and any tax assessed on the company under the Act for any period, whether before or in the course of or after its liquidation, cannot be recovered, then every person who was a director of the private company at any time during the period for which the tax is due, shall be jointly and severally liable for the payment of such tax, unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

25. Tax as an arrear of land revenue:-If the tax assessed or penalty levied or interest payable under the Act, or any amount of tax including deferred tax which is treated as a loan extended by the Government to the dealer and any instalment thereof, are not paid by a dealer within the time specified therefor, the whole of the amount then remaining unpaid may be recovered as if it were an arrear of land revenue.
26. Preferential claims to assets:-Notwithstanding anything to the contrary contained in any law for the time being in force, any amount of tax, including deferred tax which is treated as a loan extended by the Government to the dealer, penalty, interest and any other sum payable by a VAT dealer or TOT dealer or any other dealer under the Act, shall be the first charge on the property of the VAT dealer or TOT dealer or any other dealer as the case may be.
27. Transfers to defraud revenue void and Provisional Attachment of Property:-(1) Where during the pendency of any proceedings under the Act, or after the completion thereof, any VAT dealer or TOT dealer or any other dealer creates a charge on, or parts with the possession by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever, or any of his assets in favour of any other person such charge or transfer shall be void unless he proves that such charge or transfer was not with the intention to defraud any tax or any other sum payable.

(2)(a) where, during the pendency of any proceeding for the assessment or reassessment of any tax or turnover tax which has escaped assessment, the authority prescribed is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, may with the previous approval of the Commissioner, by order in writing, attach provisionally in the prescribed manner any property belonging to the dealer;

(b) every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under clause (a):

Provided that the Commissioner may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed two years.

28. Powers of Deputy Commissioner under Revenue Recovery Act:-(1) A Deputy Commissioner shall have the powers of a Collector under the Andhra Pradesh Revenue Recovery Act, 1864 (Act 2 of 1864) for the purpose of recovery of any amount due under the Act.

(2) Subject to the provisions of sub-section (3), all Deputy Commercial Tax Officers shall, for the purpose of recovery of any amount due under the Act, have the powers of the Mandal Revenue Officer under the Andhra Pradesh Rent and Revenue Sales Act, 1839 (Act 7 of 1939) for the sale of property distrained for any amount due under the Act.

(3) Notwithstanding anything contained in the Andhra Pradesh Rent and Revenue Sales Act, 1839 (Act 7 of 1839) the Deputy Commercial Tax officer in the exercise of the powers conferred by sub-section (2) shall be subject to the control and superintendence of the Deputy Commissioner.

29. Recovery of tax from third parties:-(1) The Commissioner or any other authority prescribed may at any time or from time to time,by notice in writing (a copy of which shall be forwarded to the dealer at his last address known to such authority) require any person from whom money is due or may become due to the defaulter, or any person who holds or may subsequently hold money for, or on account of the defaulter, to pay to such authority, either fourth with if the money has become due or is so held, within the time specified in the notice but not before the money becomes due or is held, so much of the money as is sufficient to pay the amount due by the defaulter in respect of arrears of tax, interest, penalty or the whole of the money when it is equal to or less than that amount.

[Provided that in case of banks, the amount due to the defaulting dealer includes the amounts payable to the dealers by virtue of the overdraft facility.]

(2) The authority prescribed may, at any time, or from time to time, amend or revoke any such notice or extend the time of making any payment in pursuance of the notice.

(3) Any person making any payment in compliance with the notice under this section shall be deemed to have made the payment under the authority of the defaulter and the receipt of the authority prescribed shall constitute a good and sufficient discharge of the liability of such person to the extent of the amount referred to in the receipt

(4) Any person discharging any liability to the defaulter after receipt of the notice referred to in this section, shall be personally liable to the authority prescribed to the extent of the liability discharged or to the extent of the liability of the defaulter for the amount due under the Act, whichever is less.

(5) Where any person to whom a notice under this section is sent proves to the satisfaction of the authority prescribed that the sum demanded or any part thereof is not due by him to the defaulter or that he does not hold any money for or on account of the dealer, then nothing contained in this section shall be deemed to require such person to pay the sum demanded or any part thereof, to the authority prescribed.

(6) Where any person to whom a notice under sub-section (1) is sent, fails to pay to the authority prescribed the sum demanded or any part thereof as required in the said notice, such sum shall be recoverable from such person as if it were an arrear of land revenue due from him.

(7) The provisions of this section shall be without prejudice to any action that may be taken for the recovery of the money due from the dealer.

30. Recovery of tax when business transferred:- Where ownership of the business of a dealer registered under the Act and liable to pay tax is transferred, any tax or any other amount payable under the Act in respect of such business and remaining unpaid at the time of the transfer, may without prejudice to any action that may be taken for its recovery from the transferor, be recoverable from the transferee as if the transferee were the dealer liable to pay such tax or other amount.

Appeals and Revisions

31. Appeal to Appellate Authority:-(1) Any VAT dealer or TOT dealer or any other dealer objecting to any order passed or proceeding recorded by any authority under the provisions of the Act other than an order passed or proceeding recorded by an Additional Commissioner or Joint Commissioner or Deputy Commissioner, may, within thirty days from the date on which the order or proceeding was served on him, appeal to such authority as may be prescribed:

Provided that the Appellate Authority may within a further period of thirty days admit the appeal preferred after a period of thirty days if he is satisfied that the VAT dealer or TOT dealer or any other dealer had sufficient cause for not preferring the appeal within that period:

[Provided further that an appeal so preferred shall not be admitted by the appellate authority concerned unless the dealer produces the proof of payment of tax, penalty, interest or any other amount admitted to be due, or of such instalments as have been granted, and the proof of payment of twelve and half percent of the difference of the tax, penalty, interest or any other amount, assessed by the authority prescribed and the tax, penalty, interest or any other amount admitted by the appellant, for the relevant tax period, in respect of which the appeal is preferred.]

(2) The appeal shall be in such form, and verified in such manner, as may be prescribed and shall be accompanied by a fee which shall not be less than Rs. 50/- (Rupees fifty only) but shall not exceed Rs. 1,000/- (Rupees one thousand only) as may be prescribed.

(3)(a) Where an appeal is admitted under sub-section (1), the appellate authority may, on an application filed by the appellant and subject to furnishing of such security or on payment of such part of the disputed tax within such time as may be specified, order stay of collection of balance of the tax under dispute pending disposal of the appeal;

(b) Against an order passed by the appellate authority refusing to order stay under clause (a), the appellant may prefer a revision petition within thirty days from the date of the order of such refusal to the Additional Commissioner or the Joint Commissioner who may subject to such terms and conditions as he may think fit, order stay of collection of balance of the tax under dispute pending disposal of the appeal by the appellate authority;

(c) Notwithstanding anything in clause (a) or (b), where a VAT dealer or TOT dealer or any other dealer has preferred an appeal to the Appellate Tribunal under Section 33, the stay, if any, ordered under clause (b) shall be operative till the disposal of the appeal by such Tribunal, and, the stay, if any ordered under clause (a) shall be operative till the disposal of the appeal by such Tribunal, only in case where the Additional Commissioner or the Joint Commissioner on an application made to him by the dealer in the prescribed manner, makes specific order to that effect.

(4) The appellate authority may, within a period of two years from the date of admission of such appeal after giving the appellant an opportunity of being heard and subject to such rules as may be prescribed,-

(a) confirm, reduce, enhance or annul the assessment or the penalty, or both; or

(b) set aside the assessment or penalty, or both, and direct the authority prescribed to pass a fresh order after such further enquiry as may be directed; or

(c) pass such other order as it may think fit.

[(4A) Where any proceeding under this section has been deferred on account of any stay orders granted by the High Court or Supreme Court in any case or by reason of the fact that an appeal or other proceeding is pending before the High Court or the Supreme Court involving a question of law having a direct bearing on the order proceeding in question, the period during which the stay order is in force or the period during which such appeal or proceeding is pending, shall be excluded, while computing the period of two years specified in sub-section (4) for the purpose of passing appeal orders under this Section.]

(5) Before passing orders under sub-section (4), the appellate authority may make such enquiry as it deems fit or remand the case to any subordinate officer or authority for an inquiry and report on any specified point or points.

(6) Every order passed in appeal under this section shall, subject to the provisions of Sections 32, 33, 34 and 35 be final.

32. Revision by Commissioner and other prescribed authorities:- (1) The Commissioner may suo mow call for and examine the record of any order passed or proceeding recorded by any authority, officer or person subordinate to him, under the provisions of the Act, including sub¬section (2) and if such order or proceeding recorded is prejudicial to the interests of revenue, may make such enquiry, or cause such enquiry to be made and subject to the provisions of the Act, may initiate proceedings to revise, modify or set aside such order or proceeding and may pass such order in reference thereto as he thinks fit.

(2) Powers of the nature referred to in sub-section (1) may also be exercised by the Additional Commissioner, Joint Commissioner, Deputy Commissioner and Assistant Commissioner in the case of orders passed or proceedings recorded by the authorities, officers or persons subordinate to them:

[Provided that the power under sub-section (1) or (2) shall not be exercised by the authority specified therein in respect of any issue or question which was decided on appeal by the Appellate Tribunal under Section 33;]

(3) In relation to an order of assessment passed under the Act, the powers conferred by sub-sections (1) and (2) shall be exercisable only within a period of four years from the date on which the order was served on the dealer.

(4) No order shall be passed under sub-section (1) or (2) enhancing any assessment unless an opportunity has been given to the dealer to show cause against the proposed enhancement.

(5) It shall be lawful for the Commissioner to defer any proceeding under this section by the reason of the fact that an appeal or other proceeding is pending before [the Appellate Tribunal or the High Court or the Supreme Court] involving a question of law having a direct bearing on the order or proceeding in question.

(6) Where an order passed under this section has been set aside by any court or other competent authority under the Act for any reason, the period between the date of such order and the date on which it has been so set aside shall be excluded in computing the period of four years specified in sub-section (3), for the purpose of making a fresh revision, if any, under this section.

(7) Where any proceeding under this section has been deferred on account of any stay order granted by[the Appellate Tribunal or the High Court or the Supreme Court] in any case, or by reason of the fact that an appeal or other proceeding is pending before [the Appellate Tribunal or the High Court or the Supreme Court] involving a question of law having a direct bearing on the order or proceeding in question, the period during which the stay order was in force or such appeal or proceeding was pending shall be excluded in computing the period of four years specified in sub-section (3), for the purposes of exercising the power under this section.

33. Appeal to the Appellate Tribunal:-[(1) any dealer objecting to an order passed or proceeding recorded:

(a) by any authority, on appeal under Section 31; or

(b) by the Additional Commissioner or Joint Commissioner or Deputy Commissioner under sections 21 or 32 or 38; or

(c) By any authority following the ruling or order passed under Section 67;

may appeal to the Appellate Tribunal within sixty days from the date of service of the order or proceeding on him.]

(2) The Appellate Tribunal may within a further period of sixty days admit the appeal preferred after the period of sixty days specified in sub¬section (1), if it is satisfied that the dealer had sufficient cause for not preferring the appeal within that period:

[Provided that no appeal against the order passed under Section 31 shall be admitted under sub-section (1) or sub-section (2) of this section unless it is accompanied by satisfactory proof of the payment of fifty percent of the tax, penalty, interest or any other amount as ordered by the Appellate Authority under Section 31;]

Provided further that no appeal against the order passed under sub-section (2) of section 32 shall be admitted under sub-section (12) or sub-section (2) unless it is accompanied by satisfactory proof of the payment of the tax, penalty, interest or any other amount admitted by the appellant to be due or of such instalments as might have become payable, as the case may be, and twenty five percent of the difference of the tax, penalty, interest or any other amount ordered by the revisional authority under sub-section (2) of section 32 and the tax, penalty, interest or any other amount admitted to be due and paid by the appellant;

Provided also that no appeal against the order passed by any authority by following the ruling or order, issued under Section 67, shall be admitted under sub-section (1) or sub-section (2) unless it is accompanied by satisfactory proof of the payment of the tax, penalty, interest or any other amount admitted by the appellant to be due or payable, or of such instalments thereof, as might have become payable, as the case may be and the proof of payment of fifty percent of the difference of the tax penalty, interest or any other amount, levied by the authority by following the ruling, issued under Section 67, and the tax, penalty, interest or any other amount admitted to be due and paid by the appellant:

Provided also that the authority prescribed shall refund the said amount of twelve and half percent or twenty five percent or fifty percent of the difference of tax, penalty, interest or any other amount assessed by the authority prescribed or revisional authority as the case may be and the tax, penalty, interest or any other amount admitted and paid by the appellant, with interest calculated at the rate of 12% per annum if the refund is not made within 90 days from the date or receipt of the order passed under section 31 or Section 33.

(3) The appeal shall be in the prescribed form, shall be verified in the prescribed manner, and shall be accompanied by such fee which shall not be less than one hundred rupees but shall not exceed two thousand rupees as may be prescribed.

(4) The Appellate Tribunal may, after giving both parties to the appeal a reasonable opportunity of being heard-

(a) confirm, reduce, enhance or annul the assessment or the penalty or both; or

(b) set aside the assessment or the penalty, or both, and direct the authority prescribed to pass a fresh order after such further inquiry as may be directed; or

(c) pass such other order as it may think fit:

Provided that if the appeal involves a question of law, a decision on which is pending in any proceeding before the High Court or the Supreme Court, the Appellate Tribunal may defer the hearing of the appeal before it, till such proceeding is disposed of.

(5)(a) Before passing any order under sub-section (4), the Appellate Tribunal may make such inquiry as it deems fit or remand the case to the appellate authority against whose order the appeal was preferred or to the authority prescribed concerned, for an inquiry and report on any specified point or points.

(b) Notwithstanding anything contained in sub-section (4), where the VAT dealer or TOT dealer or any other dealer who has filed an appeal under this section to the Appellate Tribunal fails to appear before the Appellate Tribunal either in person or by counsel when the appeal is called on for hearing, it shall be open to the Tribunal to make an order dismissing the appeal:

Provided that the Appellate Tribunal may, on an application made by the dealer within thirty days from the date of communication of the order of dismissal and on sufficient cause being shown by him for his non-appearance when the appeal was called on for hearing, re-admit the appeal on such terms as it thinks fit, after giving notice thereof to the authority against whose order or proceeding the appeal was preferred.

(6)(a) Where a VAT dealer or TOT dealer or any other dealer, objecting to an order passed or proceeding recorded by a Deputy Commissioner under Section 21 or 32 has preferred an appeal to the Appellate Tribunal, the Additional Commissioner, or the Joint Commissioner may, on an application filed by the dealer, subject to such terms and conditions, as he may think fit, order stay of collection of the tax under dispute pending disposal of the appeal by the Appellate Tribunal;

(b) The payment of tax and penalty, if any, due in accordance with the order of the first appellate authority or of the Deputy Commissioner under Section 21 or in revision under Section 32, in respect of which an appeal has been preferred under sub-section (1), shall not be stayed pending disposal of the appeal.

(7) Except as provided in the rules Appellate Tribunal shall not have the power to award costs to either of the parties to the appeal.

(8) Every order passed by the Appellate Tribunal under sub-section

(4) shall be communicated by it to the dealer, the authority against whose order the appeal was preferred, the Commissioner and such other authorities as may be prescribed.

(9) Every order passed by the Appellate Tribunal under sub-section (4) shall, subject to the provisions of Section 34 be final.

34. Revision by High Court:- (1) Within ninety days from the date on which an order under sub-section (4) of Section 33 was communicated to him, the VAT dealer or TOT dealer or any other dealer or the authority prescribed in this behalf may prefer a petition to the High Court against the order on the ground that the Appellate Tribunal has either decided erroneously, or failed to decide, any question of law:

Provided that the High Court may admit a petition preferred after the period of ninety days aforesaid, if it is satisfied that the petitioner had sufficient cause for not preferring the petition within that period.

(2) The petition shall be in the prescribed form, shall be verified in the prescribed manner, and shall, where it is preferred by the dealer, be accompanied by a fee of rupees five hundred.

(3) If the High Court, perusing the petition, considers that there is no sufficient ground for interfering, it may dismiss the petition summarily:

Provided that no petition shall be dismissed unless the petitioner has had a reasonable opportunity of being heard in support thereof.

(4)(a) If the High Court does not dismiss the petition summarily, it shall, after giving both parties to the petition, a reasonable opportunity of being heard, determine the question or questions of law raised and either reverse, affirm, or amend the order against which the petition was preferred, or remit the matter to the Appellate Tribunal with the opinion of the High Court on the question, or questions of law raised, or pass such other order in relation to the matter as the High Court thinks fit.

(b) Where the High Court remits the matter to the Appellate Tribunal under clause (a) with its opinion on the question or questions of law raised, the Appellate Tribunal shall amend the order passed by it in conformity with such opinion.

(5) Before passing an order under sub-section (4), the High Court may, if it considers it necessary so to do, remit the petition to the Appellate Tribunal and direct it to return the petition with its finding on any specific question or issue.

(6)(a) Notwithstanding that a petition has been preferred under sub¬section (1) tax shall be paid in accordance with the assessment made in the case:

Provided that the High Court may, in its discretion permit the petitioner to pay the tax in such number of instalments, or give such other direction in regard to the payment of tax as it thinks fit:

Provided further that if, as result of the petition, any change becomes necessary in such assessment, the High Court may authorise the authority prescribed to amend the assessment, and on such amendment being made the excess amount paid by the dealer shall be refunded to him without interest, or the further amount of tax due from him shall be collected in accordance with the provisions of the Act, as the case may be.

(b) The payment of tax and penalty, if any due in accordance with the order of the Appellate Tribunal in respect of which a petition has been preferred under sub-section (1) shall not be stayed pending the disposal of the petition, but if such amount is reduced as a result of such petition, the excess tax paid shall be refunded in accordance with the provisions of the Act.

(7)(a) The High Court may, on the application of the dealer or the authority prescribed review any order passed by it under sub-section (4) on the basis of facts which were not before it when it passed the order;

(b) The application for review shall be preferred within such time, and in such manner as may be prescribed and shall, where it is preferred by the dealer, be accompanied by a fee of rupees one hundred.

(8) In respect of every petition or application preferred under sub-section (1) or sub-section (7), the costs shall be in the discretion of the High Court.

35. Appeal to High Court:- (1) Any VAT dealer or TOT dealer or any other dealer objecting to an order relating to assessment passed by the Commissioner suo-motounder Section 32 or 38 may appeal to the High Court within sixty days from the date on which the order was communicated to him:

Provided that the High Court may admit an appeal preferred after the period of sixty days aforesaid, if it satisfied that the dealer had sufficient cause for not preferring the appeal within that period.

(2) The appeal shall be in the prescribed form, shall be verified in the prescribed manner and shall be accompanied by such fee which shall not be less than rupees five hundred but shall not exceed rupees two thousand as may be prescribed.

(3) The High Court shall, after giving both parties to the appeal, a reasonable opportunity of being heard, pass such order thereon as it thinks fit.

(4) The provisions of sub-sections (4), (7) and (8) of Section 34 shall mutatis mutandis apply in relation to appeal preferred under sub-section (1) as they apply in relation to petition preferred under sub-section (1) of Section 34.

36. Petitions, Applications to be heard by a Bench:-Every petition, application or appeal preferred to the High Court under Section 34 or 35 shall be heard by a Bench of not less than two judges, and in respect of such petition, application or appeal, the provisions of Section 98 of the Code of Civil Procedure, 1908 (Central Act V of 1908) shall, so far as may be, apply.
37. Limitation in respect of certain assessments or re-assessments ordered:- Notwithstanding anything contained in Sections 21 and 32 where an assessment, re-assessment, rectification in or revision of an assessment is made in respect of a dealer or any person, in pursuance or in consequence of or to give effect to any finding or direction contained in an order under Sections 31, 32, 33, 34 and 35 or in an order of any court in a proceeding, otherwise than by way of appeal or revision, such assessment, re-assessment, rectification in or revision of an assessment shall be made within three years from the date of receipt of such order by the prescribed or revising authority as the case may be:

Provided that if such appeal, order or order of any Court has been subjected to further appeal, either partially or entirely, and if there are orders of stay prohibiting the authority concerned to pass consequential orders, the period of three years shall get extended by the period during which such stay orders were in force:

Provided further that if the subsequent appeal results in modification of such appeal, order or order of any Court which is subjected to further appeal, either partially or wholly, the period of three years shall be computed from the date of receipt of subsequent order of appeal but not from the date of receipt of the original appeal, order or order of any Court which was subjected to further appeal.

Refund of Tax

38. Refund of tax:-(1)(a) A VAT dealer effecting sales falling under sub-section (1) or (3) of Section 5[our]of the Central Sales Tax Act, 1956 in any tax period shall be eligible for refund of tax, if the input tax credit exceeds the amount of tax payable subject to the condition that the exports have been made outside the territory of India. The excess of tax shall be refunded within a period of ninety days on a claim made on a VAT return prescribed to the authority prescribed subject to the provisions of the Act and the rules made thereunder;

(b) In all other cases, the VAT dealer may make a claim for refund of any excess credit available at the end of second year after the commencement of the Act and thereafter in the return to be filed for the month of March every year if registered as a VAT dealer for a minimum period of twelve months or in the event of cancellation of registration. The excess of input tax credit claimed as refund shall be refunded within ninety days of the date of receipt of the claim.

(c) The claim for refund under this section shall be made on the VAT return in the form prescribed.

(d) A VAT dealer, who has paid tax in excess of the amount due for a tax period, may claim a credit in the next tax return.

(2) Where a VAT dealer claiming a refund is required by authority prescribed to provide accounts or records to substantiate the claim but fails to do so in a manner satisfactory to the authority prescribed within seven days of issue of notice, the time period specified in sub-section (1) for making the refund shall not apply.

(3) Where a claim of a VAT dealer is not accepted either in full or in part, the authority prescribed, shall send a notice in writing, to the VAT dealer.

(4) A VAT dealer aggrieved by the decision under sub-section (3), may file an appeal as prescribed in the Act.

(5) The tax paid under the Act on the purchases made by specialized agencies of the UNITED NATIONS ORGANISATION and Consulates or Embassies of any country located in the State, or International Crop Research Institute for Semi Arid Tropics, Hyderabad shall be refunded in such manner as may be prescribed.

[Provided that, Government may by notification denotify or exclude any of the Organisations, Consulates or Embassies or any other International Institutions from the purview of this sub-section making them not eligible for refund of tax under the Act on the purchases made by them.]

(6) Where the authority prescribed fails to make a refund within the time specified under sub-section (1), the amount of refund shall carry simple interest at the rate of one percent per month on the amount of the refund for the period of delay.

(7) A TOT dealer shall be eligible to adjust any excess tax paid by him in the subsequent returns or may claim refund at the time of cancellation of registration in the manner prescribed.

[(8) The Government may, by notification provide for grant of refund earlier than the period stipulated in this section, of any excess credit available, after adjusting the tax payable under the Act or any tax payable under the provisions of Central Sales Tax Act, 1956 in respect of any Value Added Tax dealer or any category of Value Added Tax dealers.]

[(9) The tax paid under the Act, by the person who is not liable to be registered as Value Added Tax or Turnover Tax dealer and not liable to pay tax under the Act, may be refunded in the manner as may be prescribed.]

39. Interest on over payments and late refunds:-(1) Where the authority prescribed is required to refund an amount of tax to a VAT dealer or TOT dealer or any other dealer as a result of;

(a) a decision under Section 31 ; or

(b) a decision of the Appellate Tribunal under Section 33 ; or

(c) a decision of the High Court under Section 35,

such refund shall be made within a period of ninety days from the date of the receipt of the order.

Where refund is not made within the stipulated time as mentioned in sub-section (1), the amount of refund shall carry interest at the rate of one percent per month for the period of delay. The interest in respect of part of a month shall be computed proportionately and for this purpose, a month shall mean a period of 30 days.

40. Power to adjust, withhold refunds:- (1) The Commissioner or the authority prescribed shall have the power to adjust any amount due to be refunded against any tax, penalty and interest outstanding against a VAT dealer or a TOT dealer or any other dealer.

(2) Where an order giving rise to a refund is the subject matter of an appeal or further proceeding, or where any other proceeding is pending, and the authority prescribed is of the opinion that the grant of the refund is likely to adversely affect the revenue, the authority prescribed may, with the previous approval of the Deputy Commissioner, withhold the refund till such time as the Deputy Commissioner may determine.

(3) Where any demand of tax or penalty or both is disputed by a VAT dealer or TOT dealer before any appellate authority or Sales Tax Appellate Tribunal or High Court and the demand becomes finally due either partly or fully an [interest at the rate of one and quarter (1.25%) percent per month] shall be charged from the date such tax or penalty was originally due.

CHAPTER VI

Records And Investigation Powers

41. Issue of Bills:-Every VAT dealer who makes a sale to a person other than a VAT dealer or every TOT dealer or any other dealer whose taxable turnover is not less than Rs. 5,00,000/- (Rupees five lakhs only) in a year, shall issue a bill or cash memorandum in such form and with such details of tax collected as may be prescribed, for every sale involving an amount not less than Rs. 100 (Rupees one hundred only):

Provided that every VAT dealer or TOT dealer or any other dealer shall issue a sale bill in the proforma prescribed, irrespective of the amount of sale, when demanded by the buyer.

42. Records:-(1) Every VAT dealer or TOT dealer shall maintain the documents and records specified in the rules at the place of business so registered in the English language or in any of the languages specified in the Eighth Schedule to the Constitution.

(2) Every person registered under the Act, every dealer liable to get himself registered under the Act, every agent acting on behalf of a resident principal and every other dealer who is required so to do by the authority prescribed by notice served in the prescribed manner, shall keep and maintain a true and correct account promptly in any of the languages mentioned in sub-section (1), showing such particulars as may be prescribed; and different particulars may be prescribed for different classes of persons or dealers.

(3) The Commissioner may get the books of accounts maintained by any dealer audited by a Chartered Accountant or a Cost Accountant or an enrolled Sales Tax Practitioner for any tax period.

(4) Records required to be maintained under sub-section (1) shall be retained for a period of six years after the end of the year to which they relate or where the assessment is subject matter of appeal or revision under Sections 31, 32, 33, 34 or 35, the records shall be retained for a period of six years after the assessment has become final.

43. Access and seizure of goods, books, records and computers:-(1) For the purpose of enforcing compliance of the provisions of the Act, any officer not below the rank of Deputy Commercial Tax Officer shall have the power of entry, inspection, search and seizure and confiscation and he:-

(a) shall have, full and free access to any premises, place, goods, books, record, computer or any electronically stored data at any time during business hours prescribed under the relevant law for the time being in force and where no such hours are prescribed at all reasonable times without any prior notice to any dealer;

(b) may make an extract or copy from any book, record or computer-stored information to which access is obtained under clause (a);

(c) may seize and confiscate any goods not accounted for and seize any books or records that, in his opinion, affords evidence that may be material in determining the liability of any VAT dealer or TOT dealer or any other dealer under the Act;

(d) may retain any such book or record for a period of one month for determining the tax liability of a dealer or for any proceedings under the Act;

Provided that where such books or records are needed for more than one month, the permission of the next higher authority shall be obtained for each additional month;

(e) may seize and retain the computer for a period of one month where a hard copy or computer disk of information stored in a computer is not furnished, to get the information required:

Provided that where such computer is needed for more than one month, the permission of the next higher authority shall be obtained for each additional month; and

(f) shall have power to enter and search any office, shop, godown, vessel, receptacle or vehicle or any other place of a carrier or bailee where goods are delivered to such carrier or bailee for transmission.

(2) For the purposes of sub-section (1), any such officer shall have power to enter and search at any time during the business hours prescribed under the relevant law for the time being in force, or where no such hours are prescribed, at all reasonable times, any office, shop, godown, vessel, vehicle or any other place of business or any building or place where such officer has reason to believe that the dealer keeps or is, for the time being, keeping any goods, accounts, registers or other documents of his business:

Provided that no residential accommodation not being a shop-cum-residence shall be entered into and searched by any officer below the rank of Deputy Commercial Tax Officer except on the authority of an order issued by any officer not below the rank of a Deputy Commissioner having jurisdiction over the area; or an officer not below the rank of Deputy Commissioner working in Vigilance and Enforcement Department having jurisdiction over the entire State of Andhra Pradesh and all searches under this sub-section shall so far as may be, made in accordance with the provisions of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974) subject to the rules if any, made in this behalf.

(3) The power conferred by sub-section (2) shall include the power to break open any box or receptacle in which any goods, accounts, registers or other documents of the dealer may be contained, or to break open the door of any premises, where any such goods, accounts, registers or other documents may be kept:

Provided that the power to break open the door shall be exercised only after the owner or any other person in occupation of the premises if he is present therein, fails or refuses to open the door on being called upon to do so.

(4) The power conferred by sub-section (2) shall also include the power to,-

(a) seal for a period of not exceeding twenty-four hours, any box, receptacle, godown or building where any goods, accounts, registers or other documents of the dealer are, or reasonably believed to be, kept, if the owner or any other person in occupation, leaves the premises or refuses to open any box, receptacle, godown or building or is not readily available;

(b) search any person, other than customer or a visitor, who has got out of or is about to get into, or is in, any building, vessel or vehicle, if the officer has reason to suspect that such person has secreted about any goods, accounts, registers or other documents.

(5) Any such officer shall have power to seize and confiscate any goods which are found in any office, shop, godown, vehicle, vessel or any other place of business or any building or place of the dealer, but not accounted for by the dealer in his accounts, registers and other documents maintained in the course of his business:

Provided that before taking action for the confiscation of goods under this sub-section, the officer shall give the person affected an opportunity of being heard and make an inquiry in the prescribed manner.

(6) The owner, manager, or any other VAT dealer or TOT dealer shall provide all reasonable facilities and assistance for the effective exercise of powers under this section by such officer.

(7) A VAT dealer or TOT dealer whose books, records, or computer have been removed and retained under sub-section (1) may examine them and make copies or extracts from them during regular office hours under such supervision as the Commissioner or inspecting authority as may be determined.

44. Fair Market value:-(1) Where the authority prescribed has reason to believe that any goods of a fair market value exceeding Rs. 5,000/- (Rupees five thousand only) have been sold or purchased by a dealer, to or from another dealer or person, as the case may be, for a consideration which is less than fair market price of the goods and that consideration for such sale or purchase as agreed to between the parties has not been truly stated in the invoice or delivery challan or any other document relating thereto, with the object of facilitating the reduction or evasion of the tax payable under the Act, the authority prescribed may, subject to the provisions of this section, initiate proceedings for seizure and the acquisition of such goods.

(2) The powers conferred under sub-section (1) shall be exercised by the authority prescribed in respect of goods sold or purchased, which, are in transit or in the possession of the seller or buyer or his agent.

(3) In any proceedings under this section in respect of any goods which have been sold or purchased for a consideration which is less than its fair market price, it shall be presumed, unless the contrary is proved, that the consideration for such sale as agreed to between the parties has not been truly stated in the invoice, or sale bill or other documents related thereto with such object as is referred to in sub-section (1).

(4) Before initiating such proceedings, the authority prescribed shall record his reasons for doing so and no orders shall be passed under sub-section (1) without giving the VAT dealer or TOT dealer an opportunity of being heard.

(5) No such proceedings shall be initiated unless the authority prescribed has reason to believe that the fair market price of the goods exceeds the consideration therefor by more than twenty per cent.

(6) Where any goods are acquired under this section the authority prescribed shall pay for such acquisition compensation which shall be a sum equal to the aggregate of the amount of sale price of the goods mentioned in the invoice or delivery challan or any document related thereto and any expenditure incurred on freight or any other incidental expenses incurred by the VAT dealer or TOT dealer in relation to those goods.

CHAPTER VII

Establishment Of Check Posts

45. Establishment of Check Posts:-(1) If the Government or the Commissioner considers it necessary that with a view to prevent or check evasion of tax in any place or places in the State, it is necessary so to do, the Government or the Commissioner may, by notification, direct the setting up of a check post or the erection of a barrier, or both, at such place or places as may be notified.

(2) At every check post or barrier mentioned in sub-section (1), or at any other place when so required by any officer empowered by the Government in this behalf, the driver or any other person in charge of goods vehicle or vessel shall stop the vehicle or vessel as the case may be, and keep it stationary as long as may reasonably be necessary, and allow the officer in charge of the check post or barrier, or the officer empowered as aforesaid, to examine the contents in the vehicle or vessel and inspect all records relating to the goods carried, which are in the possession of such driver or other person in charge for the purpose of ascertaining whether there has been any sale or purchase of goods carried and in case there was sale or purchase of the goods carried, whether such sale or purchase is liable to tax and if so,-

(a) whether such tax has been paid; or

(b) whether the sale or purchase of the goods carried has, for the purpose of payment of tax been properly accounted for in the bills of sale, or delivery notes or such other documents as may be prescribed

(3) If on such examination and inspection it appears,-

(a)(i) that the tax, if any payable in respect of the sale or purchase of the goods carried, has been paid; or

(ii) that the sale or purchase of the goods carried has, for the purpose of payment of tax been properly accounted for in the documents referred to in clause (b) of sub-section (2);

the said officer shall release the goods vehicle or vessel with the goods carried;

(b)(i) that the tax, if any, payable in respect of the sale or purchase of the goods carried has not been paid; or

(ii) that the sale or purchase of the goods carried has, for the purpose of payment of tax not been properly accounted for in the documents referred to in clause (b) of sub-section (2); and

if the said officer is satisfied, after making such enquiry as he deems fit, that with a view to prevent the evasion of tax payable in respect of the sale or purchase of the goods, carried, it is necessary to detain the goods he shall detain the goods and direct the driver or any other person in-charge of the goods vehicle or vessel to pay such tax, or to furnish security for an amount equal to five times the amount of tax payable in such form and in such manner and to such authority as may be prescribed, on behalf of the person liable to pay such tax.

(4) If the tax is paid or the security is furnished, then the goods so detained shall be released forthwith.

(5) The driver or any other person in charge of the goods vehicle or vessel shall, if so required, give his name and address and the name and address of the owner of the goods vehicle or vessel as well as those of the consignor and the consignee of the goods.

(6) If the tax directed to be paid or the security directed to be furnished under sub-section (3) is not paid and furnished and if the said officer is satisfied, after making such enquiry as he deems fit, that with a view to prevent the evasion of tax payable in respect of the sale or purchase of the goods carried, it is necessary to detain the goods, he shall detain so much of the goods as are approximately equal in value to the amount of tax directed to be paid or security directed to be furnished under sub-section (3) as long as may reasonably be necessary:

Provided that no such goods shall be detained by the said officer for more than three days except with the permission of the next higher authority.

(7)(a) Where goods are carried without paying tax, if any, payable or goods are carried without being properly accounted for in the documents referred to in clause (b) of sub-section (2), the said officer shall collect the tax payable on the goods so carried and in addition levy a penalty not exceeding two times the amount of tax payable on such goods after giving a reasonable opportunity to the person likely to be affected, against the proposed penalty;

(b) any such officer shall have power to seize and confiscate any goods where such goods are carried in the goods vehicle without any documents or covered by fictitious documents:

Provided that before taking action for the confiscation of goods under this sub-section, the officer shall give the person affected an opportunity of being heard.

(8) In case the goods detained under sub-section (6) are subject to speedy and natural decay, and in the case of the goods, where no claim is made within the prescribed period, the said officer shall, subject to such conditions as may be prescribed, sell such goods in open auction and remit the sale proceeds thereof in a Government treasury:

Provided that if the said officer is an officer below the rank of a Deputy Commercial Tax Officer, the sale under this sub-section shall be effected by the Deputy Commercial Tax Officer having jurisdiction.

(9) Any person entitled to such sale proceeds shall, on application to the authority prescribed and upon sufficient proof, be paid the sale proceeds mentioned in sub-section (8), after deducting the expenses of the sale and other incidental charges and the amount of tax and penalty due in respect of the sale or purchase of the goods in question.

Explanation: For the purpose of this section, the explanation 'said officer' means the officer-in-charge of the check-post or barrier or the officer empowered under sub-section (2).

46. Power to inspect Carrier's places:-(1) Where a carrier or bailee, to whom goods are delivered for transmission, before delivery is taken from him, keeps the said goods in any office, shop, godown, vessel,receptacle, vehicle or any other place, any officer not below the rank of Deputy Commercial Tax Officer (DCTO), shall have power to enter into and search such office, shop, godown, vessel, receptacle, vehicle or other place of business or building or place, and to examine the goods and inspect all records relating to such goods. The carrier or bailee or the person in-charge of the goods and records shall give all facilities for such examination or inspection and shall if so required produce the bill of sale or delivery note or such other document as may be prescribed regarding the goods and give his name and address and the name and address of the carrier or the bailee and the consignee.

Explanation: For the purpose of this section, where goods are delivered to a carrier or a bailee for transmission, the movement of goods shall be deemed to commence at the time of such delivery and terminate at the time when delivery is taken from such carrier or bailee.

(2) Any such officer shall have power to seize and confiscate any goods which are found in any office, shop, godown, vehicle, vessel or any other place of business or any building or place of a carrier or a bailee for transmission where such goods are not covered by any document or covered by fictitious documents:

Provided that before taking action for the confiscation of goods the officer shall give the person affected an opportunity of being heard.

47. Transit Pass:-Where a vehicle carrying goods, coming from any place outside the State and bound for any other place outside the State, pass through the State, the driver or other person-in-charge of such vehicle shall obtain in the prescribed manner a transit pass from the officer¬in-charge of the first check post or barrier after his entry into the state and deliver it to the officer-in-charge of the last check-post or barrier before his exit from the State, failing which it shall be presumed that the goods carried thereby have been sold within the State by the owner or person-in-charge of the vehicle and accordingly the tax shall be assessed and penalty, if any shall be levied in accordance with the provisions of the Act:

Provided that where the goods carried by such vehicle are, after their entry into the State, transported outside the State by any other vehicle or conveyance, the burden of proving that the goods have actually moved out of the State shall be on the owner or person-in-charge of the vehicle.

Explanation:- If a vehicle is hired for transportation of goods by any person, the hirer of that vehicle shall be deemed to be the owner of the vehicle.

48. Possession and submission of certain records by owners etc. of goods vehicles:-The owner or other person in charge of goods vehicle or vessel shall carry with him-

(a) bill of sale or tax invoice or delivery note,

(b) log book or goods vehicle record or trip sheet, and

(c) such other documents as may be prescribed,

relating to the goods under transport and containing such particulars as may be prescribed and shall submit to the Commercial Tax Officer, having jurisdiction over the area in which the goods are delivered, the documents aforesaid or copies thereof within such time as may be prescribed.

CHAPTER VIII

Offences And Penalties

49. Penalty for failure to register:-(1) Any VAT dealer who fails to apply for registration as required under Section 17 before the end of the month the application was due and applies during the subsequent month shall be liable to pay a penalty of Rs.5000/- (Rupees five thousand only).

(2) Any dealer who fails to apply for registration as required under Section 17 before the end of month subsequent to the month in which the obligation arose shall be liable to pay penalty of 25% of the amount of tax due prior to the date of the registration by the Registering Authority. There shall be no eligibility for input tax credit for sales made prior to the date from which the registration is effected.

(3) Any dealer who fails to notify any change in the circumstances as required under the provision of the Act or the rules made thereunder, or who fails to apply for cancellation of registration as required under Section 19 shall be liable to a penalty of Rs.2,000 (Rupees two thousand only) for each offence:

Provided that before levying penalty under this Section the authority prescribed shall give the dealer a reasonable opportunity of being heard.

50. Penalty for failure to file a return:-(1) Any VAT dealer, who fails to file a return where no tax is due, by the end of the month in which it was due, shall be liable to pay a penalty of Rs.2,500/- (Rupees two thousand five hundred only).

(2) Any dealer registered under sub-section (7) of Section 17 who fails to file a return where no tax is due shall be liable to pay a penalty of Rs. 500/-. (Rupees five hundred only).

(3) Where a dealer files a return, after the last day of the month in which it is due, he shall be liable to pay a penalty of fifteen percent of the tax due:

Provided that before levying penalty under this Section the authority prescribed shall give the dealer a reasonable opportunity of being heard.

51. Penalty for failure to pay tax when due:-(1) Where a dealer who fails to pay tax due on the basis of the return submitted by him by the last day of the month in which it is due, he shall be liable to pay tax and a penalty of ten percent of the amount of tax due:

Provided that before levying such penalty the authority prescribed shall give the dealer a reasonable opportunity of being heard.

(2) If a dealer pays the tax, penalty and interest under subsection (1) and subsequently it is found that the tax is not due, then such tax, penalty and interest shall be refunded to that dealer.

52. Penalty for assessment issued for failure to file a return:-(1) Where an assessment is made under the provisions of sub-section (1) of Section 21 for the failure to file a return, a penalty of fifty percent of the assessed amount shall be imposed.

(2) Where an assessment has been made under sub-section (1) of Section 21, and the dealer subsequently furnishes a return for the period to which the assessment relates, the authority prescribed may withdraw the assessment but the dealer shall be liable to pay penalty under sub¬section (3) of Section 50 and interest as applicable.

53. Penalty for failure to declare Tax Due:-(1) Where any dealer has under declared tax, and where it has not been established that fraud or willful neglect has been committed and where under declared tax is,-

(i) less than ten percent of the tax, a penalty shall be imposed at ten percent of such under-declared tax,

(ii) more than ten percent of the tax due; a penalty shall be imposed at twenty five percent of such under-declared tax.

(2) Where any dealer, prior to the detection by any authority prescribed, voluntarily declares that tax due for a tax period is under-declared and he pays the tax due along with interest, no penalty shall be imposed provided that such declaration is made within the time limit and in the manner prescribed.

(3) Any dealer who has under-declared tax, and where it is established that fraud or willful neglect has been committed he shall be liable to pay penalty equal to the tax under-declared ; besides being liable for prosecution:

Provided that before levying penalty under this Section, the authority prescribed shall give the dealer a reasonable opportunity of being heard.

54. Penalty for failure to use or misuse of TIN & GRN:- Any dealer who is registered under Section 17 and who fails to use a TIN or GRN or misuses a TIN or GRN contrary to the requirements of the Act or rules made thereunder, shall be liable to pay a penalty of Rs. 1,000/- (Rupees one thousand only) for each offence:

Provided that before levying penalty, the authority prescribed shall give the dealer a reasonable opportunity of being heard.

55. Penalty for issue of tax invoice and for the use of false tax invoices:- (1) Any VAT dealer, who fails to issue a tax invoice or an invoice or a bill or cash memorandum as required by Sections 14 and Section 41, shall be liable to pay a penalty of Rs. 5,000 (Rupees five thousand only) or 100% of the tax whichever is lower, for each offence.

(2) Any VAT dealer, who issues a false tax invoice or receives and uses a tax invoice, knowing it to be false, shall be liable to pay a penalty of 200% of tax shown on the false invoice.

(3) Any TOT dealer or any other dealer who fails to issue a bill or cash memorandum as required by Section 41 shall be liable to pay a penalty of Rs.250/- (Rupees two hundred and fifty only):

Provided that before levying penalty under this Section, the authority prescribed shall give the dealer a reasonable opportunity of being heard.

[(4) (a) Any dealer, who purchases any goods by furnishing a declaration and uses such goods contrary to such declaration, shall be liable to pay a penalty of 200% of the tax leviable in the absence of such declaration on the value of such goods so purchase;

(b) any dealer, who claims that any sale of any goods is liable to tax at a reduced rate is found to be in possession of any false or fabricated declaration and pays tax at a reduced rate under the Act, shall be liable to pay a penalty of 200% of the tax leviable in the absence of such declaration on the value of the goods, so sold;

Provided that before levying penalty under this sub-section, the assessing authority shall give the dealer a reasonable opportunity of being heard.]

56. Penalty for failure to maintain records:-Any VAT dealer or TOT dealer who fails to maintain proper records in accordance with the provisions of the Act, is liable to pay a penalty at the rate of Rs. 5,000/- (Rupees five thousand only) for each subsequent offence committed after a warning is issued in writing for the first offence, without prejudice to the payment of tax, penalty and interest if any due under the provisions of the Act :

Provided that before imposing such penalty the authority shall give the dealer a reasonable opportunity of being heard.

57. Penalty for unauthorized/excess collection of tax:-(1) No dealer shall collect any sum by way of tax, in respect of sale or purchase of any goods which are not liable to tax under the Act.

(2) No person, other than a dealer, shall collect on the sale or purchase of any goods any sum by way of tax from any other person and no dealer shall collect any amount by way of tax at a rate or rates exceeding the rate or rates at which he is liable to pay tax under the provisions of the Act.

(3) Nothing in sub-section (2) shall apply to a person where he is required to collect separately any amount of tax under the provisions of any other law for the time being in force.

(4) If any person collects tax in contravention of the provisions of sub-section (1) or (2) any sum so collected shall be forfeited either wholly or partly to the Government and in addition he shall be liable to pay a penalty of an amount equal to the amount of tax so collected:

Provided that the authority prescribed shall not levy penalty if it is evident that due to bona fide mistake the dealer collected tax in contravention of sub-section (1) or (2) and the tax so collected in excess has been remitted to the Government along with the tax payable for that month:

Provided further that the authority prescribed shall while imposing the penalty or forfeiture, take into consideration the amounts refunded to the purchaser from out of the amounts collected, by way of tax in contravention of sub-section (1) or (2) or for the refund of which satisfactory arrangement has been made.

(5) No order for the forfeiture under this section, shall be made after the expiration of three years from the date of collection of the amount referred to in sub-section (4):

Provided that in computing the said period of three years, the period during which any stay order was in force or any appeal or other proceeding in respect thereof was pending shall be excluded.

(6) If the authority prescribed in the course of any proceeding under the Act, or otherwise has reason to believe that any person has become liable to penalty with or without forfeiture of any sum under sub-section (4) such authority shall serve on such person a notice requiring him on a date and at a place specified in the notice to attend and show cause why a penalty with or without forfeiture of any sum as provided in sub¬section (4) shall not be imposed on him.

(7) The authority prescribed shall thereupon hold an enquiry and shall make such order as he thinks fit.

(8) No prosecution for an offence under this section shall be instituted in respect of the same facts on which a penalty has been imposed.

58. Prosecutions for offences:-Any dealer or person who fails to comply with the requirements under Sections 14, 16, 17, 21, 29, 42, 43, 64 or any other provisions of the Act shall on conviction be punishable with imprisonment for a term which may extend to three months or with fine or with both.
59. Offences of obstructing the authority:-Any dealer who obstructs the authority prescribed in the performance of his duties under the Act shall on conviction be punishable with imprisonment for a term which shall not be less than one month but which may extend to six months and with fine.
60. Offences by Companies:-(1) Where an offence under the Act has been committed by a Company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the Company for the conduct of the business of the Company, as well as the Company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that, nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under the Act has been committed by a Company, and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the Company such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation:- For the purpose of this Section,-

(a) 'Company' means a body corporate and includes a firm, association or persons or body of individuals whether incorporated or not; and

(b) 'Director' in relation to a firm means a partner in the firm, and in relation to any association of persons or body of individuals, means any member controlling the affairs thereof.

61. Compounding of offences:-(1) The authority prescribed may accept, from any dealer who has committed an offence under the Act by way of composition of such offence.

(a) where the offence consists of the evasion of tax, in addition to such tax, a sum of money equal to the amount of tax subject to a minimum of Rs. 3,000/- (Rupees three thousand only); and

(b) in other cases a sum of money not exceeding Rs. 3,000 (Rupees three thousand only).

(2) Any order passed or proceeding recorded by the authority prescribed under sub-section (1) shall be final and no appeal or application for revision shall lie therefrom.

62. Court for prosecution:-(1) No Court other than the Court of a Magistrate of the first class shall take cognizance of, or try, an offence under the Act.

(2) No prosecution for any offence under the Act shall be instituted except with the written consent of the Commissioner.

63. Power to summon witnesses and production of documents:-(1) An authority prescribed or an appellate or revising authority or an inspecting authority or any officer of the Commercial Taxes Department not lower in rank than an Assistant Commercial Tax Officer shall, for the purposes of the Act, have all the powers:-

(a) to summoning and enforcing the attendance of any person and examining him on oath or affirmation; and

(b)compelling the production of any document.

(2) Without prejudice to the provisions of any other law for the time being in force, where a person to whom a summon is issued either to attend to give evidence, or produce accounts, registers, records or other documents at a certain place and time intentionally omits or fails to attend or produce accounts, registers, records or other documents at such place or time the authority or officer mentioned in sub-section (1) may after giving the person concerned a reasonable opportunity of being heard impose upon him by way of penalty a sum not exceeding Rs. 500/-(Rupees five hundred only) as it or he thinks fit.

(3) Any officer of the Commercial Taxes Department, not lower in rank than an Assistant Commercial Tax Officer shall have powers to call for such information, particulars or records as he may require from any person for the purpose of assessment, levy and collection of tax under the Act.

64. Power to get information:-(1) Any authority prescribed or appellate or revision authority may by writing, require any person or authority to furnish such information, particulars or records available with the person or authority as will be useful or relevant to any proceeding under the Act.

(2) The person or authority from whom such information, particulars, or records are required under sub-section (1) shall furnish, within a reasonable time, the information particulars or records available.

65. Bar of jurisdiction:- Save as otherwise expressly provided in the Act, no Court shall entertain any suit, or other proceeding to set aside or modify, or question the validity of any assessment, order or decision made or passed by any officer or authority under the Act or any rules made there under, or in respect of any other matter falling within its scope.
66. Appearance before authority:-Any person who is entitled to appear before any authority other than the High Court in connection with any proceedings under the Act, may be represented before such authority-

(a) by his relative or a person regularly employed by him, if such relative of person is duly authorized by him in writing in this behalf; Or

(b) by a legal practitioner ; or

(c) by a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 (Central Act 3 of 1949) ; or

(d) by a Cost Accountant within the meaning of the Cost and Works Accountant Act, 1959 (Central Act 23 of 1959).

(e) Subject to such conditions as may be laid down by the rules in that regard by a person who was enrolled as a Sales Tax Practitioner by such authority on payment of such fees and possessing such qualifications as may be prescribed.

If such Chartered Accountant or Cost Accountant or Sales Tax Practitioner is duly authorised in writing in this behalf.

CHAPTER IX

General Provisions

67. Clarification and Advance Rulings:- (1) The Commissioner may constitute a State level 'Authority for Clarification and Advance Rulings' comprising of three officers not below the rank of Joint Commissioner to clarify, in the manner prescribed any aspect of the implementation of the Act.

(2) No application shall be entertained where the question raised in the application

(i) is already pending before any officer or authority of the Dep or Appellate Tribunal or any Court;

(ii) relates to a transaction or issue which is designed apparently for the avoidance of tax:

Provided that no application shall be rejected under this sub-section unless an opportunity has been given to the applicant of being heard and where the application is rejected, reasons for such rejections shall be recorded in the order.

(3) No officer or any other authority of the Department shall proceed to decide any issue in respect of which an application has been made by an applicant under this Section and is pending.

(4) The order of the authority shall be binding,-

(i) on the applicant who had sought clarification;

(ii) in respect of the goods or transaction in relation to which a clarification was sought; and

(iii) on all the officers other than the Commissioner:

Provided the dealer does not file an appeal before Sales Tax Appellate Tribunal within 30 days of the Ruling in the manner prescribed.

(5) The authority for clarifications shall have power to review, amend or revoke its rulings at any time for good and sufficient cause by giving an opportunity to the affected parties.

An order giving effect to such review or amendment or revocation shall not be subject to the period of limitation.

(6) The Commissioner may also refer any matter for opinion of the Authority for clarification without prejudice to his authority.

68. Ongoing contracts:-(1) Where a contract or an agreement was concluded between two or more parties before the commencement of the Act and no provision for tax under the Act was made in the contract, the selling dealer shall pay tax due on any sale liable to tax made under such contract after the commencement of the Act.

(2) Where a contract is concluded after the commencement of the Act, and no provision relating to tax was made in the contract, the contract price shall be deemed to include tax due under the Act and the selling dealer shall account for the tax due.

69. Tax Deferment:-(1) Notwithstanding anything contained in the Act, any industrial unit availing a tax holiday or tax exemption on the date of commencement of the Act shall be treated as a unit availing tax deferment.

(2) The unit availing into tax deferment as specified in sub-section (1) shall be eligible to issue tax invoices and to claim input tax credit subject to provisions of Section 13 of the Act.

(3) The period of eligibility, the method of debiting eligibility amount, the repayment and any other benefits for all units availing tax deferment shall be in the manner prescribed.

70. Protection of acts done in good faith:-(1) No suit, prosecution or other proceeding shall lie against any officer or servant of the Government for any act done or purporting to be done under the Act without the previous sanction of the Government, and no such suit, prosecution or other proceeding shall be instituted after the expiry of six months from the date of the act complained of.

(2) No officer or servant of the Government shall be liable in respect of any such act in any civil or criminal proceeding if the act was done in good faith in the course of the execution of duties imposed on him or the discharge of functions entrusted to him by or under the Act.

71. Submission of returns by banks:-Every scheduled bank including any branch of such bank or any banking institution in the State shall, at the request of the assessing authority concerned, submit in each month a return in the prescribed form, of all bills relating to goods discounted, cleared or negotiated and the payment and receipts relatable to the sale or purchase of goods transacted by or through it during the preceding month, in such manner and within such period as may be prescribed.
72. Provision in the case of defective or irregular proceedings:-No assessment made, penalty or compounding fee levied or other order passed by any officer or authority under the Act, shall be set aside merely on account of any defect or irregularity in the procedure relating thereto, unless it appears that such defect or irregularity has in fact occasioned material hardship or failure of justice.
73. Rounding off turnover:-The amount of turnover for any tax period or for any calendar quarter shall be rounded off to the nearest multiple of Rs. 10/- (Rupees ten only) and for this purpose if such amount is not a multiple of Rs. 10/- (Rupees ten only), but is Rs. 5/- (Rupees five only) or more, the amount shall be increased to the next higher amount which is a multiple of Rs. 10/- (Rupees ten only) and if such amount is less than Rs. 5/- (Rupees five only), the amount shall be reduced to the next lower amount which is a multiple of Rs. 10/- (Rupees ten only); and the amount so rounded off shall be deemed to be the turnover of the dealer for the purposes of the Act.
74. Rounding off of tax etc.:- The amount of tax, input tax, output tax, net tax, interest, penalty, or any other sum and the amount of refund due under the provisions of the Act, shall be rounded off to the nearest ten rupees and for this purpose, if such amount is fifty paise or more it shall be increased to the next rupee and if such amount is less than fifty paise, it shall be ignored.
75. Powers of Subordinate officer to be exercised by higher authorities:-The powers conferred by the Act and the rules made thereunder on any of the officers appointed under Section 3A may also be exercised by any of the officers superior to the officers so empowered, subject to any instructions issued by the Commissioner.
76. Power to remove difficulties:-(1) If any difficulty arises in giving effect to the provisions of the Act in consequence of the transition to the said provisions from the corresponding provisions of the Act in force immediately before the commencement of the Act, the Government may, by order in the Andhra Pradesh Gazette, make such provisions as appear to them to be necessary or expedient for removing the difficulty.

(2) If any difficulty arises in giving effect to the provisions of the Act (otherwise than in relation to the transition from the provisions of the corresponding Acts in force before the commencement of the Act), the Government may, by order make such provisions, not inconsistent with the purposes of the Act, as appear to it to be necessary or expedient for removing the difficulty.

77. Instructions to Subordinate Officers:- The Commissioner may, from time to time, issue such orders, instructions and directions not inconsistent with the provisions of the Act or the rules made there under to his subordinate officers as he may deem fit, for the proper administration of the Act and such officers and all other persons employed in the enforcement of the Act, shall comply with such orders, instructions and directions.

Provided that no such orders, instructions or directions shall be such as to interfere with the discretion of any appellate authority in exercise of its appellate functions.

78. Power to make Rules:-(1) The Government may by notification, make rules to carry out the purposes of the Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for,-

(a) all matters expressly required or allowed by the Act to be prescribed;

(b) the manner of determination of the amount payable by the dealer in respect of:-

(i) any transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

(ii) any delivery of goods on hire purchase or any system of payment by instalments;

(iii) any transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;

(iv) any transfer of property in goods involved in lucky gift scheme.

(c) the term of office, and the conditions of service, of the members of the Appellate Tribunal;

(d) the issue of registration to persons engaged in the sale or purchase of goods, the fees payable therefor and the imposition of conditions in respect of the same for the purpose of enforcing the provisions of the Act;

(e) the rectification of mistakes apparent from the record of any assessment, appeal or revision and the period within which such rectification may be made;

(f) the administration of the check posts set up and barriers erected under the Act and the regulation of the work therein;

(g the disposal of goods confiscated under the act and the proceeds thereof:)

(h) the issue of bills or tax invoices or cash memoranda, the class or classes of dealers who should maintain counterfoils for the same and the particulars to be shown in and the manner of maintenance of such counterfoils and the time for which they should be preserved;

(i) the maintenance of purchase bills or accounts of purchases and sales by dealers carrying on business in specified goods and the time for which they should be preserved;

(j) the issue of delivery notes in respect of goods delivered, or transported to retail dealers in pursuance of sales effected to them, the form and manner of their issue and the time for which they should be preserved;

(k) the application of the provisions of the Code of Civil Procedure, 1908 (Central Act V of 1908) to the extent specified, in respect of applications, appeals and other proceedings under the Act;

(l) securing that returns furnished or accounts or documents produced, or evidence of any kind given under the Act before any assessing authority or on appeal or revision from any decision of such authority are kept confidential;

(m) the duties and powers of officers appointed for the purpose of enforcing the provisions of the Act;

(n) the circumstances in which and the extent to which, fees paid in pursuance of Section 33 may be refunded;

(o) generally regulating the procedure to be followed and the forms to be adopted in proceedings under the Act;

(p) the assessment and recovery of tax under the Act in respect of business which is discontinued or the ownership of which has changed or in respect of business of a deceased person;

(q) the assessment and recovery of tax under the Act in respect of business owned by minors or other incapacitated persons or by persons residing outside the State;

(r) the assessment and recovery of tax under the Act in respect of business owned by any person whose estate or any portion of whose estate is under the control of the Court of Wards, the Administrator-General, the Official Trustee, or any receiver or manager appointed by or under any order of a Court;

(3) Any rule under the Act, may be made so as to have retrospective effect.

(4) In making a rule under sub-section (1) or (2), the Government may provide that a person guilty of a breach thereof, shall, on conviction by a Magistrate of the First Class, be liable to be punished with fine which may extend to Rs. 2,000/- (Rupees two thousand only).

(5) Every rule made under the Act, shall immediately after it is made, be laid before the Legislative Assembly of the State if it is in session and, if it is not in session, in the session immediately following, for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if before the expiration of the session in which it is so laid or the session immediately following, the Legislative Assembly agrees in making any modification in the rule or in the annulment of the rule, the rule shall, from the date on which the modification or annulment is notified have effect only in such modified form or shall stand annulled as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

79. Power to amend schedules:- (1) The Government may, by notification, alter, add to or cancel any of the Schedules.

(2) Where a notification has been issued under sub-section (1) there shall, unless the notification is in the meantime rescinded, be introduced in the Legislative Assembly, as soon as may be, but in any case during the next session of the Legislative Assembly following the date of the issue of the notification, a Bill on behalf of the Government, to give effect to the alteration, addition or cancellation, as the case may be, of the Schedule specified in the notification, and the notification shall cease to have effect when such Bill becomes law, whether with or without modifications, but without prejudice to the validity of anything previously done thereunder:

Provided that if the notification under sub-section (1) is issued when the Legislative Assembly is in session, such a Bill shall be introduced in the Legislative Assembly during that session:

Provided further that where for any reason a Bill as aforesaid does not become law within six months from the date of its introduction in the Legislative Assembly, the notification shall cease to have effect on the expiration of the said period of six months.

(3) All references made in the Act to any of the Schedules shall be construed as relating to the Schedules in force for the time being amended in exercise of the powers conferred by this Section.

CHAPTER X

Repeal

80. Repeal:- (1) The Andhra Pradesh General Sales Tax Act, 1957 (Andhra Pradesh Act VI of 1957) is hereby repealed :

Provided that such repeal shall not affect the previous operation of the said Act or section or any right, title, obligation or liability already acquired, accrued or incurred thereunder, and subject thereto, anything done or any action taken (including any appointment, notification, notice, order, rule, form, regulation, certificate, licence or permit) in the exercise of any power conferred by or under the said Act or section shall be deemed to have been done or taken in the exercise of the powers conferred by or under this Act, as if this Act was in force on the date on which such thing was done or action was taken; and all arrears of tax and other amounts due at the commencement of this Act may be recovered as if they had accrued under this Act.

(2) Notwithstanding anything contained in sub-section (1), any application, appeal, revision or other proceeding made or preferred to any officer or authority under the said Act or section and pending at the commencement of this Act, shall, after such commencement, be transferred to and disposed of by the officer or authority who would have had jurisdiction to entertain such application, appeal, revision or other proceeding under the Act if it had been in force on the date on which such application, appeal, revision or other proceeding was made or preferred.

(3) Upon such repeal of the Andhra Pradesh General Sales Tax Act, 1957 the provisions of Sections 8, 8A, 9 and 18 of the Andhra Pradesh General Clauses Act, 1891 (Act 1 of 1891) shall apply.

81. Repeal of Ordinance 1 of 2005:- The Andhra Pradesh Value Added Tax Ordinance, 2005 is hereby repealed.

Schedule - I

(See Section 7)

List of Goods Exempt From Tax Under Section 7

S.No.	Name of the Commodity
1	[Agricultural implements manually operated or animal driven, hand operated sprayers including knapsack/backpack power sprayers (powered upto 35 cc engines developing 0.8 to 1.4 HP), dusters and parts thereof];
2.	Aids and implements used by handicapped persons.
[3	Aquatic feed, poultry feed and cattle feed including grass, hay and straw,feed supplements or nutrients and soya Bean De-oiled Cake].
4.	Betel leaves
5.	Books, periodicals and journals [including maps, charts, globes and atlases]
6.	Charkha, Ambar Charkha and Gandhi Topi
7.	Charcoal
8.	Jowar, Maize, Ragi, Bajra, Kodan, Kutki, Barley, Varigalu or Variga Rice,Korralu or Korra Rice.
9.	Condoms and contraceptives
10.	Cotton yarn in hank and silk yarn in hank
11.	Curd, Lussi, Butter Milk and separated milk
12.	Earthen pot
13.	Electrical energy
14.	Firewood other than casuarina poles, eucalyptus logs and cut sizes thereof
15.	Fishnet and fishnet fabrics
16.	Fresh milk and pasteurized milk other than UHT milk and skimmed milk powder
17.	Fresh plants, saplings and fresh flowers
18.	Vegetables and fruits other than those cured, frozen, preserved, processed, dried, dehydrated or canned
19.	Garlic and Ginger
[20	Bangles made of shells, glass, Lac or any other material other than those made of precious metals]
21.	Handlooms, parts and accessories thereof and goods produced from handlooms
22.	Human blood and blood plasma
23.	Kumkum, Bindi, alta and Sindur
[24	Meat, flesh of poultry, fish including dry fish, prawns, prawn seed, lobsters, crabs, shrimps and other sea food except when they are sold in frozen state or in a sealed container; eggs, livestock and animal hair]
25.	National Flag
[26	Organic manures excluding deoiled-Cakes]
27.	Non-judicial stamp paper sold by Government Treasuries; postal items like envelope, post card etc. Sold by Government; rupee note [and coins], when sold to the Reserve Bank of India and cheques, loose or in book form
28.	Raw wool
29.	Semen including frozen semen
30.	Silk worm laying, cocoon and raw silk [other than raw silk imported from outside the country]
31.	Slate and slate pencils
[32	Coconut, Tender Green Coconut and copra].
33.	Toddy, Neera and Arak
34.	Unbranded bread [and unbranded rusk]
35.	[Salt including processed and branded salt].
36	Water other than:— (i) aerated, mineral, distilled, medicinal, ionic, battery, de-mineralised water; and (ii) water sold in sealed container
37.	Prasadam, Bhog or Maha Bhog by Religious Institutions
38.	Plantain Leaves
39.	Bamboo Matting
40.	Puffed Rice, Parched Rice, Murmuralu and Atukulu
41.	Husk of pulses, paddy, groundnut and wheat bran
42.	Leaf plates and leaf cups-pressed or stitched and loose and unstitched vistarakulu
43.	Unbranded broomsticks
[44	Seeds for sowing and gardening purpose including the seed or grain, corresponding to the seed, sold to the nodal agencies, namely, Andhra Pradesh State Seeds Development Corporation (APSSDC), Andhra Pradesh State Co-operative Marketing Federation (Andhra Pradesh Madded), Andhra Pradesh State Co-operative Oilseeds Growers Federation (OILFED), the Hyderabad Agricultural Co-operative Association Ltd (HACA), National Seeds Corporation Ltd.], [National Agricultural Co-operative Marketing Federation of India Ltd. (NAFED)] and also including the seed or grain procured by the seed companies, duly following the Seed Certification or Labeling Procedure].
45.	[XXX ].
46.	[XXX].
47.	[(a) Un-manufactured tobacco covered under tariff heading No. 2401 of the Central Excise Tariff Act, 1985 (5 of 1986);(b) Bidis (biris) covered under tariff item No. 24031031, 24031039, 24031090 of the Central Excise Tariff Act, 1985 (5 of 1986)].
48.	[Rakhi]
49.	[[Fabric, made ups] and garments made of Khadi cloth],
50.	[Sugarcane]
51.	[Crochet laces]
52.	[Jaggery]
53.	[Tamarind]
[54	Mesta or Bimli extracted from plants of the species Hibiscus cannabinus and Hibiscus sabdariffa var altissima
55.	Pippalamodi
56.	Coir and Coir products excluding rubberised Coir mattresses]
[57	Khandasari Sugar]
[58	The following goods, sold by Canteen Stores Department or the Indian Naval Canteen Services, either directly or through their unit-run Canteens, to the Army/ Navy/ Air force personnel both working and retired and who are eligible for purchasing goods from them. 1. All kinds of cereals and pulses and products thereof, which are used for cooking food. 2. Spices, used in cooking, including Chillies powder, turmeric powder and other similar powders, used in cooking. 3. Biscuits, Beverages, Confectionery & Soft Drinks. 4. Soups, Squashes Snacks & Cornflakes. 5. Tea & Coffee. 6. Pickles, Sauces, Jams & Jellies. 7. Milk Powders, Baby Food, Food beverages & Food Energisers. 8. Vermicelli & Instant Foods. 9. Cooking oils, Vanaspathi & Ghee. 10. Honey, Chyavanprash, Eno, Antiseptic cream & lotions. 11. Starch and sago. 12. Copra, Coconuts and ground-nuts. 13. Shaving Blades & Razor sets. 14. Shaving creams & After Shave lotions. 15. Tooth Brushes, Shaving brushes, Shoe brushes & Toilet Brushes. 16. Face Creams, Hair creams & Body creams. 17. Dental Cream & Tooth powders. 18. Perfumes & Deodorants, including Agarbatti /Dhoopsticks. 19. Toilet Soaps and Detergent Soaps. 20. Toilet powder & Detergent Powder. 21. Hair oils & Shampoos. 22. Hair Dye, Sanitary Towels & Toilet papers. 23. Fabric care, Starch, Robin Blue & Ranipal. 24. Dish Washing Soap, Powder & Scrubber. 25. Wax candles & Agarbati. 26. Pressure Cookers, Milk Boiler & Rice Cooker. 27. Vaccum Flask, Casserole, Crockery & Glass Ware. 28. Electrical Bulbs, Tube light & CFL Lamp. 29. Mosquito Repellent, coil, Mat & Liquid. 30. Torch Cells, Torch cases. 31. Room Freshners, Toilet / Floor Cleaners & insecticides. 32. Shoe polish, cloth clips & metal clips. 33. Gas Stoves, Gas Lighters & Safety Matches, cooking ware including cups, plates and glasses made of Aluminum paper or plastic. 34. Ceiling fans, Table fans, Wall fan, Pedestal Fans. 35. Exhaust Fans, Mixers, Juicer Mixer Grinders, Irons. 36. Coffee makers, ovens, immersion heater, toasters. 37. Instant Geysers, Transistors. 38. Water filters & Filter candles. 39. Plastic Buckets, Basins, Drum & Mugs. 40. Water Bottles & Water cans. 41. Suitcases, moulded & soft luggage. 42. Sports wear, Golf Balls, shoe, track suit, umbrellas & Padlocks. 43. Helmets. 44. Wrist Watches. 45. Food processor microwave ovens. 46. Coir products, Coir mattress. 47. Water heaters, Vaccum Cleaners, Water Purifiers. 48. Mono Block Pumps. 49. Sewing Machines (Hand & Foot). 50. Sun-glasses, Room Coolers. 51. Ready-made garments and hosiery goods. [52. Indian Made Foreign Liquor as defined in the Andhra Pradesh Excise Act, 1968 with basic price not exceeding Rs. 500/- per case of 9 Nos. of 1000 ml or 12 Nos of 750 m1/650 ml (Beer) or 24 Nos. of 375 ml/330 ml (Beer) or 48 Nos. of 180 ml or 96 Nos. of 90 ml bottles. Note : For the purpose of this entry basic price means: Ex-factory price + cost of bottles + cost of packing material + freight + Insurance + Handling charges and Import Fee, if any]. [53. Cartridges for rajor set 54. Shaving Foam/Gell Soap 55. Fabric Care brush/Scrubbers. 56. Baby care lotion/cream/oil. 57. Clip for Cloth. 58. Tooth pastes. 59. Liquid Soap. 60. Face Tissue Paper. 61. Body care Talcum Powder, Body Care Jelly, Medicated powder/Face powder. 62. Face Gel/Lotion, Hair Gel/Lotion, Hair Fixer/Hair remover. 63. Cosmetic Lotion/Cream and Make-up Requisites and Winter Care products. 64. Disinfectants 65. Kitchen Accessories and Cooker Accessories. 66. Lunch Box and refill for vaccum flasks. 67. Knives. 68. Lighting Devices. 69. Oven Grillers. 70. Storage Water Heater. 71. Household Electric Accessories/Voltage Stablizers. 72. Sewing Machine Accessories. 73. Cloth Hangers. 74. Floor/Metal Polishes. 75. Mirrors. 76. Radio/Cassette Player/ CD player/Recorder/ Walkman. 77. Water Containers/Jug. 78. Kitchen Jar, Containers/Plastic Trays, Table/ Door Mats/ Plastic mats /Carpets and Plastic Items. 79. Plastic Chair/Moulded Furniture, Stool, Pedal Bin. 80. Hair Comb/Hair Brush. 81. Holdalls/Travel Bags/School Bags/Hot Water Bag. 82. Rubber Chappal. 83. Bed Sheet/Covers, Pillow/Pillow Cover, Bath Towels/ Hand Towels/Napkin 84. Polishing cloth/Duster. 85. Socks/Blankets/Lungi/Hand Kerchiefs. 86. Mosquito nets. 87. Trouser/Pant-Shirt Pieces. 88. Sports Goods. 89. Rope Floor Wiper. 90. Juices. 91. Sharbat, Squashes and Cordials, Tinned food, Mixers. 92. Ketchup, Baking Powder, Vinegar, Food Additives, Custard powder. 93. Noodles. 94. Antiseptic Liquid. 95. Note Books, Registers, Pens/Markers/Greeting Cards/Fevicol. 96. Balms, Antiseptic Applications, Medicines, Tonics, Band Aid and Digestives. 97. Cutleries. 98. Brief Cases. 99. Instant foods]..
[59	Sale of goods to any unit located in SEZ.
59-A	All goods sold to units, Operator, Developer, Co-developer and Contractors engaged by them for use in processing area of the respective Special Economic Zone except the goods listed in Rule 20 (2) (a) of the Andhra Pradesh Value Added Tax Rules, 2005].
[60	Nawar]
[61	Goods sold to transit passengers both incoming and outgoing, at the duty free shops established at the Rajiv Gandhi International Airport, Shamshabad, Ranga Reddy District].
[62	Zari]
[63	Fabrics, madeups and garments, produced and sold by the powerloom units in the State to dealers registered under the Act *1 only at the point of sale in the hands of powerloom units]
[64	Fertilizers, at the point of sale by the Primary Agricultural Cooperative Societies (PACS) directly to the farmers.]
[65	Transfer of right to use feature films (in digital or physical form) by film producers to distributors or exhibitors.]

Explanation.- The goods mentioned in entries [45 and 46] of this schedules shall be goods included in the relevant heads and sub-heads of the 1st Schedule to the Additional Duties of Excise (Goods of special importance) Act 1957, but does not include goods where no additional duties of excise are levied under that schedule.

Schedule-II

(See Section 8)

Transactions Zero-Rated And Eligible For Input Tax Credit

S. No.	Description
1.	Sale of taxable goods in the course of inter-State trade or Commerce falling within the scope of Section 3 of the Central Sales Tax Act, 1956.
2.	Sale of goods falling within the scope of Section 5(1) and Section 5 (3) of the Central Sales Tax Act, 1956.
Serial No. [3	Omitted
[3-A	Omitted]
[4	Goods or products specifically marketed with brand "Andhra Pradesh Girijan Co operative Corporation Limited"].
[5.	x x x]

Schedule-III

(See sub-section (3) of Section 4)

List of goods taxable @1%

S. No.	Name of the Commodity
[1	Bullion, Specie, Platinum and other precious metals].
[2	Articles and Jewellery made of bullion or specie or any other precious metals and Jewellery embedded with precious stones and semi-precious stones].
3.	Precious stones, that is to say, Diamonds, Emeralds, Rubees, Sapphires and semi-precious stones and pearls.

Schedule-IV

(See sub-section (3) of Section 4)

List of goods taxable @ [5%]

S. No.	Name of the Commodity
1.	Agricultural implements not operated manually or not driven by animal
[2.	Goods of intangible or incorporeal nature as may be notified from time to time by the State Government, and including; (i) Patents (ii) Trade marks (iii) Import licenses including exim scrips, special import licenses and duty free advance licenses. (iv) Export Permit or license or quota (v) Software packages (vi) Credit of Duty Entitlement Pass Book (vii) Technical know-how (viii) Goodwill (ix) Copyright (x) Designs registered under the Designs Act, 1911 (xi) SIM cards used in Mobile Phones (xii) Franchise, that is to say, an agreement by which the franchisee is granted representational right to sell or manufacture goods or to provide service or undertake any process identified or associated with the franchisor, whether or not a trade mark, service mark, trade name or logo or any symbol, as the case may be, is involved.]
3.	All kinds of bricks including fly ash bricks, refractory bricks
4.	Asphaltic roofing sheets
5.	Earthen tiles other than ceramic and glazed tiles
6.	All types of yarn and sewing thread other than cotton yarn in hank and silk yarn in hank.
[7.	All utensils including pressure cookers and pans excepting utensils made of precious metals]
[8.	Areca nut, betel nut, betel nut powder with additives, supari and mouth fresheners made of somph (Ani seed) and coriander powder with additives].
9.	Bamboos, [cane (Rattan)] Casuarina poles, eucalyptus logs and cut sizes thereof
10.	Bearings of all kinds
11.	Beedi leaves
12.	Transmission rubber belts
13.	[Bicycles, E-Bikes], tricycles, cycle rickshaws and parts and accessories thereof
14.	Bitumen [of all varieties]
15.	Branded bread
16.	Bulk Drugs
[17.	Electric Motors and Oil Engines upto a capacity of 10 HP, Centrifugal, Monobloc and submersible pumpsets Starters of electric motors and pumpsets, parts and accessories thereof]
[18.	Coffee including Coffee Seeds, roasted seeds and coffee powder, Cocoa powder, Chicory, blended or French coffee];
19.	[Chemical fertilisers, Bio-fertilisers] and Bone Meal including mixtures or Nutrient elements such as Iron, Zinc, Copper and biological derivatives such as Enzymes, Co-enzymes 4.Substituted for the words "auxines" by Act No. 21 of 2011, dated 29-11-2011, w.e.f. 15-09-2011.[Plant Harmones, Gibberllines, Auxines and plant growth promoters or regulators]
20.	Pesticides, Insecticides, fungicides, herbicides, weedicides and other plant protection equipment and accessories thereof [including drip and sprinkle irrigation systems but excluding mosquito repellants in any form]
21.	[x x x]
22.	Cotton waste and Cotton yarn waste
23.	Crucibles
24.	Electrodes including welding electrodes and welding rods
25.	Exercise Note books including Graph books and laboratory note books, Office stationery including computer stationery, writing pads and Account Ledgers.
26.	Fibres of all types and fibre waste
27.	Ferrous and non-ferrous metals and alloys and extrusions thereof.
28.	[Ravva, Vermicelli,] [Macaroni] and Semiya
29.	Parched and fried grams or dhalls
30.	[x x x]
31.	Hand Pumps, parts and fittings thereof
32.	Herb, bark, dry plant, dry root, commodity known as jari booti and dry flower
33.	Hose Pipes [and fittings thereof]
34.	Hosiery goods of all kinds
35.	Rice bran including de-oiled rice bran
36.	Ice
37.	Incense Sticks commonly known as, Agarbathi, dhupkathi or dhupati
38.	Industrial cables, (High voltage cables, XI. PE Cables, Jelly filled cables,optical fibre cables)
[39.	IT Products, that is to say: (1) Word Processing Machines and Electronic Typewriters; (2) Electronic Calculators; (3) Computer Systems and Peripherals, Electronic Diaries; (4) Parts and Accessories of Items (1) (2) and (3) above; (5) DC Micromotors / Stepper motors of an output not exceeding 37.5 Watts; (6) Parts of Items (5) above; (7) Uninterrupted Power Supplies (UPS) and their parts; (8) Permanent magnets and articles intended to become permanent magnets (Ferrites); (9) Electrical Apparatus for line telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carries current line systems or for digital line systems; videophones; (10) Microphones, Multimedia Speakers, Headphones, Ear-phones and Combined Microphone / Speaker Sets and their parts; (11) Telephone answering machines; (12) Parts of Telephone answering machines; (13) Prepared unrecorded media for sound recording or similar recording of other phenomena, Video and Audio CDs, Cassettes and DVDs (recorded and unrecorded); (14) IT Software on any media; [(15) Transmission apparatus other than apparatus for radio broadcasting or TV broadcasting, transmission apparatus incorporating reception apparatus including Cell Phones, Cell Phones Batteries and Cell Phones Chargers; digital still image video cameras;] (16) Radio communication receivers, Radio pagers; (i) Aerials, antennas and their parts; (ii) Parts of Items (15) and (16) above. (17) LCD Panels, LED Panels and parts thereof; (18) Electrical capacitors, fixed, variable or adjustable (Pre-set) and parts thereof; (19) Electrical resistors (including rheo-stats and potentio-meters), other than heating resistors; (20) Printed circuits; (21) Switches, Connectors and Relays for upto 5 AMPS at voltage not exceeding 250 Volts, Electronic fuses; (22) Data / Graphic Display tubes, other than TV Picture tubes and parts thereof; (23) Diodes, transistors and similar semi-conductor devices, Photosensitive semi-conductors devices; including photovoltaic cells whether or not assembled in modules or made up into panels, Light emitting diodes, Mounted spiezo-electric crystals; (24) Electronic Integrated Circuits and micro assemblies; (25) Signal generators and parts thereof; (26) Optical fibre cables; (27) Optical fibre and optical fibre bundles and cables; (28) Liquid Crystal Devices, Flat Panel display devices and parts thereof; (29) Cathode ray oscilloscopes, Spectrum Analysers, Cross-talk meters, Grain measuring instruments, Distortion factor meters, Psophometers, Network and Logic analyzer and Signal analyzer].
40.	Kerosene sold through Public distribution system
41.	[x x x]
42.	Napa Slabs (Rough and polished flooring Stones)
43.	[A11 kinds of Ores and all kinds of minerals excluding Marble and Granite]
44.	Paper of all kinds [excluding wall paper] and news print
[45.	Pipes of all varieties including GI, CI, PVC, Ductile RCC and PCC pipes,fittings thereof and Cement poles].
[46.	Moulded Plastic footwear and Hawai Chappals and straps thereof]
[47.	Diaries, Calendars, annual reports, application forms, Stationary items like letterheads, visiting cards, bill books, leaflets, flyers, folders, soft bound books, centre pinned books, hard case books, computer stationery, posters, Brochures, CD/DVD. Covers, visual aids, danglers, streamers, envelopes, labels, telephone, recharge coupons, report cards, Tickets, Cheque Books, Demand Drafts, Coupons and all kinds and classes of forms including tender and bid documents and similar printed materials].
48.	Printing Ink excluding toner and cartridges
49.	[x x x]
50.	Pulp of bamboo, wood, waste paper and bagasse
[51.	Rail coaches, engines, wagons and parts thereof]
[52.	Readymade garments [[x x x]]
[53.	Renewable energy devices and spare parts including the following :— SI.No. Description of goods HSN Code (i) Portable electrical lamps designed to function by their own source of energy (for example, dry batteries, accumulators, magnetos) other than lighting equipment of heading 8512. 8513 (ii) Lamps 8513.10 (iii) Torch 8513.10.10 (iv) Other flash lights excluding those for photo graphic purpose 8513.10.20 (v) Miners safety lamps 8513.10.30 (vi) Magneto lamps 8513. 10.40 (vii) Other 8513.10.90 (viii) Parts 8513.90.00 (ix) Pedal Power generator]
54.	Safety Matches
55.	Sewing Machines and parts and accessories thereof
56.	Ships and other vessels
57.	Silk fabrics other than Handloom silk fabrics
58.	Skimmed Milk Powder and UHT Milk
59	Spices of all varieties and forms including cumin seed, aniseed, turmeric and dry chillies
60.	Sports goods excluding apparels and footwear
61.	Starch and Sago
62.	[x x x], Tamarind seed, dhall, kernel, powder and husk
[63.	Tractors and Threshers, Harvesters, Tractor Trailers, Tyres, Tubes attachments and parts thereof]
64.	Transmission towers
65.	Umbrellas
66.	Vanaspathi, Hydrogenated Vegetable Oil
67.	Vegetable Oils — All kinds of vegetable Oils including solvent oils and Coconut Oil
[68.	Writing instruments, writing ink, Geometry Boxes, Colour Boxes, Pencil Sharpeners and Erasers]
69.	Coal Including coke in all its forms, but excluding charcoal
70.	Iron and steel, that is to say: (i) Pig Iron, Sponge Iron, and cast iron including ingot moulds, and bottom plates; (ii) Steel semis, ingots, slabs, blooms and billets of all qualities, shapes and sizes; (iii)Skelp bars, tin bars, sheet bars, hoe-bars and sleeper bars; (iv) Steel bars, rounds, rods, squares, flats, octagons and hexagons; plain and ribbed or twisted, in coil from as well as straight length; (v) Steel structurals, angles, joints, channels, tees, sheet piling sections, Z sections or any other rolled sections; (vi) Sheets, hoops, strips and skelp, both black and galvanized, hot and cold rolled, plain and corrugated in all qualities, in straight lengths and in coil form as rolled and in revitted condition; (vii) Plates, both plain and chequered in all qualities; (viii) Discs, rings, forgings and steel castings; (ix) Tool, alloy and special steels of any of the above categories; (x) Steel tubes, both welded and seamless, of all diameters and lengths including tube fittings; (xi) Tin-plates, both hot dipped and electrolytic and tin free plates; (xii) Fish plate bars, bearing plate bars, crossing sleeper bars, fish plates, bearing plates, crossing sleepers and pressed steel sleepers, rails-heavy and light crane rails; (xiii) Wheels, tyres, axies and wheel sets; (xiv) Wire rods and wires rolled, drawn, galvanized, aluminised, tinned or coated such as by copper. [(xv) Wire ropes and Wire strands];
71.	Iron and Steel scrap, that is to say:— (i) Iron scrap, cast-iron scrap, runner scrap and iron skull scrap; (ii) Steel melting scrap in all forms including steel skull, turnings and borings; (iii) Defectives, rejects, cuttings or end pieces of any of the categories of item (i) to (xiv) of entry 70.
72.	Oil Seeds, that is to say: (i) Sesamum or Til (orientale) (ii) Soyabeen (Glycine seja) Rape seed and mustard:— 1. Toria (Brassica campestris vartoria) 2. Rai (Brassica Juncea) 3. Jamba – Taramira (Eruca sativa) 4. Sarcon — yellow and brown (brassica compestris varsarson) 5. Banarasi Rai or True mustard (Brassica nigra) (iv) Linseed (linum usitatissimum) (v) Sunflower (Helianthus annus)(vi) Nigar seed (Guizotia abyssinica) (vii) Neem, vepa (Azadi rachta indica) (viii) Mahua, illupai, ippe (Madhuca indica, M. Latifolia), Bassia, Latifolia and Madhuca Longifolia Syn. M. Longifolia) (ix) Karanja, Pongam, Honga (Pongamia pinnata syn. P. Glabra) (x) Kusum (Schleichera Oleosa, syn. S. Trijuga) (xi) Punna undi(Calophyllum, inophyllum) (xii) Kokum (Carcinia indica) (xiii) Sal (Shorea robusta) (xiv) Tung (Aleurite Jordi ands A.Montana) (xv) Red Palm (elaeis guinenisis) (xvi) Safflower (corthanus tinctorius)
73.	Castor (Ricinus communis)
74.	[x x x]
75.	[x x x]
76.	Groundnut or peanut (hypogea)
77.	Cotton seeds
78.	Jute, that is to say the fibre extracted from plants belonging to the species corchorus capsularis and corchorus olitorius [x x x] and the fibre known as sunnhemp extracted from plants of the species Crotalaria Juncea whether baled or otherwise.
79.	Cotton, that is to say, all kinds of cotton (indigenous or imported) in all its unmanufactured state, whether ginned or unginned, baled, pressed or otherwise but not including cotton waste.
80.	Hides and Skins, Tanned or Un-Tanned
81.	Crude oil, that is to say, crude petroleum oils and crude oils obtained from bituminous minerals (such as shale, calcareous rock sand), whatever their composition whether obtained from normal or condensation oil deposits or by the destructive distillation of bituminous minerals and whether or not subjected to all or any of the following processes:— (1) decantation; (2) de-salting; (3) dehydration; (4) stabilization in order to normalize the vapour pressure; (5) elimination of very light fractions with a view to returning them to the oil-deposits in order to improve the drainage and maintain the pressure; (6) the addition of only those hydrocarbons previously recovered by physical methods during the course of the above mentioned process; (7) any other minor process including addition of pour point depressants or flow improvers which does not change the essential character of the substance.
82.	All kinds of Pulses and Dhalls
83.	Wheat (Triticum vulgare T. compactum, T. sphaerococum, T. durum, T. aestivum, L.T. dicoccum)
84.	Paddy (Oryza sativa L)
85.	Paddy (Oryza sativa L)
[86.	PVC Cloth, Waterproof Cloth, Tarpaulin, Rexine and Vehicle Covers made from PVC Cloth, Waterproof Cloth, Tarpaulin and Rexine Products].
[87.	Oil cakes and De-oiled Cakes other than Soya Bean De-oiled Cake]
[88.	Drugs and medicines whether patent or proprietary, as defined in clauses (i), (ii) and (iii) of Section 3 (b) of Drugs and Cosmetics Act, 1940 (Central Act 23 of 1940), and hypodermic syringes, hypodermic needles, perfusion sets, urine bags, catguts, sutures, surgical cotton, dressings, plasters, catheters, cannulae, bandages and similar articles, but not including:— (a) Medicated goods; (b) Products capable of being used as cosmetics and toilet preparations including Tooth Pastes, Tooth powders, cosmetics, Toilet articles and soaps; (c) Mosquito Repellants in any form;] (d) [X x X]
89.	Veterinary Medicines [x x x]
90.	All kinds of packing material including Hessian cloth and jute twine but excluding storage tanks made of any materials
91.	[x x x]
[92.	River Sand and grit and stone chips
93.	Extra Neutral Alcohol (ENA) and rectified spirit.
94.	Kerosene stove, kerosene lamp, petromax lamp, hurrican lamp, glass chimney and parts and accessories thereof.
95.	Bio-diesel manufactured using non-edible vegetable oils such as Jatropha, Pongamia, Rice bran, Neem, Cotton seed, Rubber seed [ sale of used cooking oil to the bio-diesel manufacturers.]
[96.	Artificial and rolled gold jewellery, imitation and costume jewellery]
[97.	LPG/CNG Conversion kits
98.	Pre-stressed Railway Concrete Sleepers]
[99.	All Handicrafts]
[100.]	[The following goods, when sold as industrial inputs]: SI.No. Heading No. Sub-heading No. Description of goods 1 2 3 4 1. 1501 to 1505 Animal (including fish) fats and oils, crude, refined or purified. 2. 1506 other animal fats and oils and their fractions whether or not refined, but not chemically modified. 3. 1521 and 1522 Vegetable waxes (other than triglycerides), bees wax, other insect waxes and spermaceti, whether or not refined or coloured; degras; residues resulting from the treatment of fatty substances or animal or vegetable waxes. 4. 1518 Animal or vegetable fats boiled, oxidized, dehydrated, sulphurized, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified; inedible mixtures or preparations of fats and oils of this chapter. 5. 1702 Liquid glucose (non medicinal), Dextrose syrup. 6. 2207.20 Denatured ethyl alcohol of any strength. [7. 2503 Sulphur of all kinds other than sub-limited sulphur, precipitated sulphur and colloidal sulphur. 7A. 2511 Natural barium sulphate (barites); natural barium carbonate (witherite), whether or not calcined, other than barium oxide of heading 2816]. 8. 2602 Manganese ores and concentrates, including ferruginous manganese ores and concentrates with a manganese content of 20% or more, calculated on the dry weight. 9. 2603 Copper ores and concentrates. 10. 2604 Nickel ores and concentrates. 11. 2605 Cobalt ores and concentrates. 12. 2606 Aluminium ores and concentrates. 13. 2607 Lead ores and concentrates. 14. 2608 Zinc ores and concentrates. 15. 2609 Tin ores and concentrates. 16. 2610 Chromium ores and concentrates. 17. 2611 Trungsten ores and concentrates. 18. 2612 Uranium or Thorium ores and concentrates. 19. 2613 Molybdenum ores and concentrates. 20. 2614 Titanium ores and concentrates. 21. 2615 Niobium, tantalum, vanadium or zirconium ores and concentrates. 22. 2616 Precious metals ores and concentrates. 23. 2617 Others ores and concentrates 24. 2618 Granulated slag(slag sand) from the manufacture of iron steel. 25. 2619 Ground granulated blast-furnace slag(GGBS) [26. 2706 Tar distilled from coal, from lignite or from peat and other mineral tars whether or not dehydrated or partially distilled, including reconstituted tars. 27. 2707 Oil and other products of the distillation of high temperature coal tar constituents exceeds that of the non-aromatic constituents]. [28. xxx xxx 29. xxx xxx 30. xxx xxx 31. xxx xxx 32. xxx xxx] 33. 2801 Fluorine, Chlorine, bromine and iodine 34. 2802 Sulphur, sublimed or precipitated; colloidal sulphur. 35. 2803 Carbon (carbon blacks and other forms of carbon not elsewhere specified or included) 36. 2804 Hydrogen, rare gases other non metals excluding medicinal grade oxygen. 37. 2805 Alkali or alkaline-earth metals, rare-earth metals, scandium and yttrium, whether or not intermixed or interalloyed; mercury. 38. 2806 Hydrogen Chloride (hydrochloric acid) Chlorosulphuric acid 39. 2807 Sulphuric acid and anhy-drides thereof; Oleum 40. 2808 Nitric acid; Sulphonitric acids 41. 2809 Diphosphorus pentaxoxide; phosphoric acid and polyphosphoric acids. 42. 2810 Oxides of boron; boric acids. 43. 2812 Halides and halide oxides of non-metals. 44. 2813 Sulphides of non-metals; commercial phosphorus trisulphide. 45. 2814 Ammonia, anhydrous or in aqueous solution. 46. 2815 Sodium hydroxide (caustic soda); potassium hydroxide (caustic potash); peroxides of sodium or potassium. 47. 2816 Hydroxide and peroxide or magnesium; oxides, hydro-xides and peroxides of strontium or barium. 48. 2817 Zinc oxide, zinc peroxide 49. 2818.30.00 Aluminium hydroxide 50. 2819 Chromium oxides and hydroxides. 51. 2820 Manganese oxides 52. 2821.10 Iron oxides and hydroxides 53. 2822 Cobalt oxides and hydroxides, commercial cobalt oxides 54. 2823 Titanium oxide. 55. 2825 Hydraxine and hydroxylamine and their inorganic salts; other inorganic bases; other metal oxides, hydroxides and peroxides. 56. 2826 Flurides, fluorosilicates, fluroaluminates and other complex flurine salts. 57. 2827 Chlorides, chloride oxides and chloride hydroxides, bromides and bromide oxides; iodides and iodide oxides 58. 2828 Hypochlorites, commercial calcium hypochlorites; chlorites; hypobromites 59. 2829 Chlorates and perchlorates; bromates and Perbromates; Iodates and periodates. 60. 2830 Sulphides; Polysulphides 61. 2831 Dithionites and sulphoxy-lates 62. 2832 Sulphites; thiosulphates 63. 2833 Sulphates; alums, peroxo-sulphates (persulphates) [64 xxx xxx] 65. 2834 Nitrites; nitrates 66. 2835 Phosphinates (hypophos-phites),phosphonates (phosphates); phosphates and polyphosphates 67. 2836 Carbonates; peroxacarbo-nates (percarbonates); commercial ammonium carbonates containing ammonium carbarnate. 68. 2837 Cyanides, cyanide oxides and complex cyanides 69. 2838 Fulminates, cyanates and thiocyanates 70. 2840 Borates, peroxoborates (perborates) 71. 2841 Sodium bichromate 72. 2841.30 Sodium dichromate 73. 2841.50 Potassium dichromate 74. 2844 Radioactive chemical elements and radioactive isotopes (including the fissile chemical elements and isotopes) and their compounds; mixtures and residues containing these products. 75. 2845 Isotopes other than those of heading No. 28.44; com-pounds, inorganic or organic of such isotopes, whether or not chemically defined. 76. 2846 Compounds inorganic or organic, of rare earth metals, of yttrium or of scandium or of mixtures of these metals. 77. 2847 Hydrogen peroxide 78. 2848 Phosphides, whether or not chemically defined, excluding ferrophosphorus. 79. 2849.20 Silicon carbide 80. 2849.10.00 Calcium carbides. 81. 2850 Hydrides, nitrites, azides, cilidides and borides, whether or not chemically defined, other than corn-pounds which are also car¬bides of heading No.28.49. 82. 2902 Cyclic hydrocarbons 83. 2903 Halogenated derivatives of Hydrocarbons 84. 2904 Sulphonated, nitrated or nitrosated derivatives of hydrocarbons, whether or not halogenated. 85. 2905 Acyclic alcohols and their halogenated,sulphonated, snitrated or nitrosated derivatives. 86. 2906 Cyclic alcohols and their halogenated sulphonated, nitrated or nitrosated derivatives. 87. 2907 Phenols; Pheno-Alcohols 88. 2908 Halogenated, sulphonated, nitrated or nitrosated derivates of phenols or phenol-alcohols. 89. 2909 Ethers, ether-alcohols, etherphenols, ether alcoholphenols, alcohol peroxides, ether peroxides, ketone peroxides (whether or not chemically defined) and their halogenated, sulphonated, nitrated or nitrosated derivates. 90. 2910 Epoxides, expoxyalcohols, exoxyphenols and exoxyethers, with a three-membered ring and their halogenated, sulphonated, nitrated or nitrosated derivates. 91. 2911 Acetals and hemiacetals, whether or not with other oxygen function and their halogenated, sulphonated, nitrated or nitrosated derivates. 92. 2912 Aldehydes whether or not with other oxygen function; cyclic polymers of aldehydes;paraformaldehyde. 93. 2913 Halogenated, sulphonated, nitrated or nitrosated derivates of products of heading No. 29.12. 94. 2914.11.00 Acetone 95. 2915 Saturated acyclic mono-carboxylic acids and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivates. 96. 2916 Unsaturated acyclic mono-carboxylic acids, cyclic monocarboxylic acids, their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivates. 97. 2917 Polycarboxylic acids, their anhydrides, halides, peroxides and peroxyacids; their halogenated sulphonated, nitrated or nitrosated derivates. 98. 2918 Carboxylic acids with additional oxygen function and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitro-sated derivates. 99. 2919 Phosphoric esters and their sales, including lactophos-phates; their salts, their halogenated, sulphonated, nitrated or nitrosated derivates. 100. 2920 Esters of other inorganic acids (excluding esters of hydrogen halides) and their salts; their halogenated, sulphonated, nitrated or nitrosated derivatives. 101. 2921 Amine-function compounds 102. 2922 Oxygen-function amino-compounds 103. 2923 Quaternary ammonium salts and hydroxides; leci-thins and other phospho-aminolipids. 104. 2924 Carboxyamide-function compounds; amide-function compounds of carbonic acid. 105. 2925 Carboxyamide-function compound (including saccharin and its salts) and imine-function compounds. 106. 2926 Nitrile-function compounds 107. 2927 Diazo, Azo-or azoxy-compounds 108. 2928 Organic derivates of hydrazine or of hydroxylamine. 109. 2930 Organo-sulphur compounds 110. 2931 Other organo organic compounds. 111. 2932 Heterocyclic compounds with oxygen heteroatom(s) only. 112. 2933 Heterocyclic compounds with nitrogen heteroatom(s) only. 113. 2934 Nucleic acids and their salts; other heterocyclic compounds. 114. 2935 Sulphonamides 115. 2938 Glycosides, natural or reproduced by synthesis and their salts, ethers, esters and other derivates. 116. 2939 Vegetable alkaloids, natural or reproduced by synthesis, and their salts, ethers, esters and other derivates. 117. 2942 Other organic compounds. 118. 3201 Tanning extracts of vegetable origin, tannins and their salts, ethers, esters and other derivates excluding catechu or gambiar. 119. 3202 Synthetic organic tanning substances; inorganic tanning substances; tanning preparations, whether or not containing natural tanning substances; enzymatic preparations for pre-tanning excluding catechu or gambiar. 120. 3203 Colouring matter of vegetable or animal origin (including dyeing extracts but excluding animal black), whether or not chemically defined; preparations based on colouring matter or vegetable or animal origin as specified in Note 2 to this Chapter excluding catechu or gambiar. 121. 3204 Synthetic organic colouring matter, whether or not chemically defined; preparations based on synthetic organic colouring matter as specified in Note 2 to this Chapter; synthetic organic products of a kind used as fluroscent brightening agents or as luminophores, whether or not chemically defined excluding catechu or gambiar. 122. 3205 Colour lakes; preparations based on colour lakes as specified in Note 2 to this chapter. 123. 3206.1 Pigments 124. 3206.50.00 Inorganic products of kind used as luminophores. 125. 3206.9 Master batches 126. 3207.1 Prepared pigments 127. 3207.40.00 Glass frit and other glass, in the form of powder, granules or flakes. 128. 3207.10.90 Other 129. 3211 Prepared driers 130. 3212 Pigments (including metallic powders and flakes) dispersed in non-aqueous media, in liquid or paste form of a kind used in the manufacture of paints (including anamels); stamping foils; dyes and other colouring matter put up in forms (for example, bales, tablets and the like) or small packings (for example, sachets or bottles of liquid) of a kind used for domestic or laboratory purposes. 131. 3215.1 Printing ink whether or not concentrated or solid. 132. 3501 Casein, caseinates and other casein derivates,casein glues. 133. 3507 Enzymes, prepared enzymes not elsewhere specified or included. 134. 3707 Chemical preparations for photographic uses (other thanvarnishes, glues, adhesives, and similar preparations). 135. 3801 Artificial graphite; colloidal or semicolloidal graphite; preparations based on graphite or other carbon in the form of pastes, blocks, plates or other semi-manufactures. 136. 3802 Activated carbon, activated natural mineral products; sanimal black, including spent animal black. 137. 3804 Residual lyes from the manufacture of wood pulp, whether or not concentrated, desugared or chemically treated, including lignin sulphonates, but excluding tall Oil of heading No. 38.03. 138. 3806 Rosin and resin acids and derivates thereof; rosin spirit and rosin oils; run gums. 139. 3807 Wood tar; wood tar oils; wood, creosote; wood naphtha; vegetable pitch; brewers pitch and similar preparations based on rosin, resin acids or on vegetables pitch 140. 3808.1 Insecticides, fungicides, herbicides, weedicides and pesticides of technical grade. 141. 3809 Finishing agents, dye carriers to accelerate the dyeing of fixing of dyestuffs and other products and preparations (for example, dressings and mordants), of a kind used in the textile, paper, leather or like industries not elsewhere specified or included. 142. 3812 Prepared rubber accelerators, compound plasticizers for rubber or plastics, not elsewhere specified or included; anti-oxidizing preparations and other compound stabilizers for rubber or plastics. 143. 3814 Reducers and blanket wash/roller wash used in the printing industry. 144. 3815 Reaction initiators, reaction accelerators and catalytic preparations, not elsewhere specified OT included. 145. 3817 Mixed alkyl benzenes and mixed alkylnaphthalenes, other than those of heading No. 2707 or 2902. 146. 3818 Chemical elements doped for use in electronics, in the form of discs, wafers or similar forms; chemical compounds doped for use in electronics. 147. 3823 Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols. 148. 3824.9 Retarders used in printing industry. 149. 3901 Polymers of ethylene in primary forms. 150. 3902 Polymers of propylene or of other olefins, in primary forms. 151. 3903 Polymers of styrene, in primary forms. 152. 3904 Polymers of vinyl chloride or of other halogenated olefins, in primary forms. 153. 3905 Polymers of vinyl acetate or of other vinyl esters in primary forms, other vinyl polymers in primary forms. 154. 3906 Actylic polymers in primary forms. 155. 3907 Polyacetals, other poly-ethers and epoxide resins, in primary forms, poly-carbonates, alkyd resins, polyallyl, esters and other polyesters, in primary forms.. 156. 3908 Polyamides in primary forms 157. 3909 Amino-resins, polyphenylene oxide, phenolic resins and polyurethanes in primary forms. 158. 3910 Silicones in primary forms. 159. 3911 Petroleum resins, coumarone-indene resins,polyter penes, polysulphides, polysulphones and other products specified in Note 3 to this Chapter, not else-where specified or included in primary forms. 160. 3912 Cellulose and its chemical derivates, and cellulose ethers, not elsewhere specified or included in primary forms. 161. 3913 Natural polymers (for example, algenic acid) and modified natural polymers (for example, hardened proteins, chemical derivates of natural rubber), not elsewhere specified or included in primary forms. 162. 3914 Ion-exchangers based on polymers of heading Nos. 39.01 to 39.13 in primary forms. 163. 3919 Self adhesive plates, sheets, film foil, tape, strip of plastic whether or not in rolls. 164. 3920 Other plates, sheets, film, foil and strip of plastics, non-cellular whether lacquered or metallised or luminated, supported or similarly combined with other materials or not. 165. 3923 Articles for the conveyance or packing of goods, of plastics, stoppers, lids, caps and other closures, of plastics but not including —(a) insulated wares, (b) bags of the type which are used for packing of goods at the time of sale for the convenience of the customer including carry bags. 166. 4001 Natural rubber, balata, gutta percha, Guayule, chicle and similar natural gums, in primary forms or in plates, sheets or strips. 167. 4002 Synthetic rubber and factice derived from oils in primary forms or in plates, sheets or strip; mixtures of any product of heading No. 4001 with any product of this heading, in primary forms or in plates, sheets or strip. 168. 4003 Reclaimed rubber in primary forms or in plates, sheets or strip. 169. 4005 Compounded rubber, unvulacanised in primary forms or in plates, sheets or strip other than the forms and articles of unvulcanised rubber described in heading No. 4006. 170. 4701 Mechanical wood pulp, chemical wood pulp, semi-chemical wood pulp and pulps of other fibrous cellulosic materials. 171. 4819 Cartons (including flattened or folded cartons), boxes (including flattened or folded boxes) cases, bags and other packing containers of paper, paper-board whether in assembled or unassembled condition. 172. 4821 Paper printed labels and paper board-printed labels. 173. 4823 Paper self adhesive tape and printed wrappers used for packing. 174. 6305.1 Sacks and bags of a kind used for packing of goods, for jute or of other textile based fibers of heading No. 5303. 175. 7010 Carboys, bottles, Jars, phials of glass of a kind, used for the packing goods; stoppers, lids and other closures of glass. 176. 7017 Glass fibers (including glass wool and glass filaments) and articles thereof (for example yarn, woven fabrics) whether or not impregnated, coated, covered or laminated with plastics or varnish. 177. 7202 Ferro alloys. 178. 7607.2 Aseptic packaging aluminum foil of thickness less than 0.2 mm and backed by paper and LDPE. 179. 8309 Stoppers, caps and lids (including crown corks, screw caps and pouring stoppers) capsules for bottles, threaded bungs, bung covers, seals and other packing accessories of base metal]. [180. 1301.20.00 Gum Arabic 181. 1520.20.00 Glycerol crude, Glycerol Waters and Glycerollyes. 182. 2508 Clay including fire clay, fine china clay and ball clay. 183. 2504 Natural Graphite 184. 2513 Pumice stone; emery; natural corundum, natural garnet and other natural abrasives, whether or not heat treated. 185. 2620 Ash and residues (other than from the manufacture of iron and steel), containing arsenic, metals or their compounds. 186. 2621 Other slag and ash, including seaweed ash (kelp); ash and residues from the incineration of municipal waste. 187. 2708 Pitch and pitch coke, obtained from coal tar or from other mineral tars. 188. 2711.14.00 Butylene 189. 2712.2 Paraffin wax containing by weight less than 0.75% of oil; Normal paraffin; not being micro crystalline petroleum wax. 190. 2811 Other inorganic acids and other inorganic oxygen compounds of nonmetals. 191. 2839 Silicates, commercial alkali, metal silicates. 192. 2901.21.00 Ethylene 193. 2901.22.00 Propylene 194. 2901.29.10 Acetylene, in dissolved condition 195. 2901.29.20 Heptene 196. 2929 Compounds with other nitrogen functions. 197. 3301 Essential oils (terpeneless or not), including concretes and absolutes; resinoids; extracted oleoresins; con-centrates of essential oils, in fats, in fixed oils, in waxes or the like, obtained by enfieurage or maceration; terpenic by-products of the deterpenation of essential oils; aqueous distillates and aqueous solutions of essential oils. 198. 3302 3302 When sold in packs of 20m1 or, as the case may be, more or in packs of 20 gms. or more, the following; Mixtures of odoriferous sub-stances, mixtures (including alcoholic solutions) with a basis of one or more of these substances, of a kind used as raw materials in industry; other preparations based on odoriferous substances of a kind used for the manufacture of beverages. 199. 3404 Artificial waxes and prepared waxes. 200. 3502 Albumins (including concentrates of two or more whey proteins, containing by weight more than 80% whey proteins, calculated on the dry matter), albuminates and other albumin derivatives. 201. 9503 Gelatin [including gelatin in rectangular(including square) sheets, whether or not surface worked or coloured] and gelatin derivatives. 202. 3504 Peptones and their derivatives; other protein sub-stances and their derivatives, not elsewhere specified or included; hide powder, whether or not chromed. 203. 3505 Dextrins and other modified starches (for example, pregelatinised or esterified starches); 204. 3824 Prepared binders for foundry moulds or cores; Retarders used in the printing industry. 205. 3915 Waste, parings and scrap of plastics. 206. 3916 Monofilament of which any cross-sectional dimension exceeds 1 mm, rods, sticks and profile shapes, whether or not surface worked but not otherwise worked, of plastics. 207. 3926 Plastic fabrics of the type used for making plastic woven sacks and plastic woven sacks. 208. 4004 Waste, parings and scrap of rubber (other than hard rubber) and powders and granules obtained there from. 209. 11/10/08 Plates, sheets and strip of microcellular rubber. 210. 4008.19.10 Blocks of micro cellular, rubber but not of latex foam sponge, used in the manufacture of soles, heels or soles and heels combined for footwear. 211. 4008.21.10 Plates, sheets and strip of microcellular rubber used in the manufacture of soles, heels or soles and heels combined for footwear. 212. 4008.29.20 Blocks of micro cellular, rubber but not of latexfoam sponge, used in the manufacture of soles,heels or soles and heels combined for footwear. 213. 4503 Corks and stoppers of natural cork. 214. 4707 Recovered (waste & scrap) paper or paper board. 215. 5310 Sacking fabrics, Hessian fabrics, jute canvas. 216. 5607 Twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated, coated, covered or sheathed with rubber or plastics. 217. 5609 Coir string. 218. 6805 Natural or artificial abrasive powder or grain on a base of textile material, of paper of paper board or of other material, whether or not cut to shape or sewn or otherwise made up. 219. 6903.90.90.00 Refractory monolithic 220. 7001 Cullet and other waste and scrap of glass in the mass 221. 7017 Laboratory, hygienic or pharmaceutical glassware, whether or not graduated or calibrated 222. 7310 Tin plate containers 223. 7325.10.00 7325.99.10 7325.99.20 7325.99.30 77325.91.00 326.11.00 7326.90.00 7419.91.00 (i)of non-malleable cast iron (ii) of iron (iii) of alloy steel (iv) of stainless steel (v) Grinding balls and similar articles for millis (vii) Grinding balls and similar articles for milli (viii)of copper (ix) of other metals 224. 8507.20.00 Valve Regulated lead acid batteries 225. 8546 Electrical insulators of any material 226. 8547 Insultating fitting for electrical machines, applicances or equipment, being fitting wholly of insulting material apart from any minor component of metal (for example, threaded sockets) incorporated during moulding solely for the purpose of assembly, other than insulting of heading 8546; electrical conuit tubing and joints therefore, of base metal lined with insulting material. 227. 8548 Wasre and scrap of primary cells, primary batteries and electric accumulators, spent primary cells, spent primary batteries and spent electric accumulators. 228. 9032 Regulator for LPG cylinders and other cylinders containing compressed gases or compressed liquids. 229. 9602.00.30 Gelatin capsules empty 230. 9606.21.00 Buttons of plastics 231. 9607 Slide fasteners and parts thereof]. [232. Yeast of all Kinds and forms. 233. Gel used for preparing bakery products and bread softener] [234. Winding wire made of copper or Enamelled Copper] [235. 5603 1300 Non-Woven Fabrics]
[101]	Liquefied petroleum gas[and Piped Natural Gas] for domestic use.
[102	Machinery of all kinds that is to say:— Sl. No. Heading No, Sub-heading No. Description of goods 1. 8401 Nuclear reactors; fuel elements (cartridges), non-irradiated, for nuclear reactors; machinery and apparatus for isotopic separation. 2.           8419.11 8419.20 8419.31.00 8419.40 8419.50 8419.60.00 8419.81 8419.89.50 8419.89.80 8419.90 [8419.39.00 8419.89.10 8419.89.20 8419.89.30 8419.89.90 Machinery, plant or laboratory equipment, whether or not, electrically heated (excluding furnaces, ovens, and other equipment of heading 8514), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vapourising, condensing or cooling, other than machinery or plant of a kind used for domestic purposes instantaneous or storage water heaters non-electric. (a) instantaneous gas water heaters (b) medical, surgical or laboratory sterilizers. (c) dryers for agricultural product 8419.32.00 (d) dryers for wood, paper pulp or paper board. (e) distilling or rectifying plant (f) heat exchange units (g) machinery for liquefying air or other gas. (h) machinery for making hot drinks or for cooking or heating food. (i) pasturizers (j) vacuum-vapour plant for deposition of metals. (k) parts (1) Dryers-other m) Pressure Vessels, Reactors, Columns, Towers or Chemical Storage Tanks. (n) Glass Lined Equipment (o) Autoclaves other than for cooking or heating food, not elsewhere specified or included. (p) others] 3. 8420 Calendaring or other rolling machines other than for metalsor glass, and cylinders therefore. 4.   8421.11.00 8421.12.00 8421.99.00 [8421.19.10 8421.19. 20 8421.19. 30 8421.19. 40 8421.19. 50 8421.19. 60 8421.19. 91 8421. 19. 99 Centrifuges, including centrifugal dryers. (a) cream separators (b) cloth dryers (c) parts (d) Bowl Centrifuges (e) Basket Centrifuges (f) Continuous automatic Centrifuges (g) Self cleaning centrifuges (h) Decanter Centrifuges Horizontal Bowl. (i) Screw Conveyor Centrifuges (j) Other for Chemical Industries (k) Other Filtering/Purifying Machines and Apparatus for liquids].Machinery for cleaning or drying bottles or other containers. 5. 8422.20.00 Machinery for cleaning or drying bottles or other containers 6. 8422.30.00 Machinery for filling, closing, ceiling or labelling bottles, canes, boxes, bags or other containers; machinery for capsuling bottlers, jars, tubes and similarly containers; machinery for aerating machinery. 7. 8422.40.00 Other packing or wrapping machinery (including heat-shrink wrapping machinery). 8. 8422.90 Parts of machinery of heading 8422. 9. 8424.30.00 Steam or sand blasting machines and similar jet projecting machines 10. 8424.90.00 Parts of machinery of sub-heading 8424.30.00 11. 8437 Machines for cleaning, sorting or grading seed,grain or dried leguminous vegetables; machinery used in the milling industry or for the working of cereals or dried leguminous vegetables, other than farm type machinery. 12. 8438.30.10 Sugar manufacturing machinery 13. 8438.90.10 Parts of sugar manufacturing machinery. 14. 8438.80.40 Tea leaf rolling or cutting machine 15. 8439 Machinery for making pulp of fibrous cellulosic material or for making or finishing paper or paper board 16. 8441 Other machinery for making up paper pulp,paper or paper board, including cutting machines of all kinds 17. 8442 Machinery, apparatus and equipment for type founding or type setting, for preparing or making printing blocks, plates, cylinders and other printing components, blocks, plates, cylinders and lithographic stones, prepared for printing purposes (planed, grained or polished). 18. 8443 Printing machinery used for printing by means of the printing type, block, plates, cylinders and other printing components; inkjet printing machines, machines for uses ancillary to printing. 19. 8444 Machines for extruding, drawing, texturing or cutting man-made textile materials. 20. 8445 Machines for preparing textile fibers, spinning, doubling or twisting machines and other machinery for producing textile yams; textile reeling or winding (including weft winding) machines and machines for preparing textile yarns for use on the machines of heading 8446 or 8447. 21. 8446 Weaving machines (looms) 22. 8447 Knitting machines, stitch bonding machines and machines for making gimped yarn, tulle, lace, embroidery, trimmings, braid or net and machines for tufting. 23. 8448 Auxiliary machinery for use with machines of heading 8444, 8445, 8446, or 8447 (for example, dobbies, jacquards, automatic stop motions, shuttle changing mechanisms); parts and accessories suitable for use solely or principally with the machines of this heading or of heading 8444, 8445, 8446 or 8447 (for example, spindles and spindle flyers, card clothing, combs, extruding nipples, shuttles, healds and heald frames, hosiery needles). 24. 8453 Machinery for preparing, tanning or working hides, skins or leather or for making or repairing footwear or leather other than sewing machines. 25. 8454 Converters, ladles, ingot moulds and casting machines, of a kind used in metallurgy or in metal foundries. 26. 8455 Metal rolling mills and rolls therefore 27. 8457 Machining centers, unit construction machines 9 single station and multi station transfer machines for working metal. 28. 8458 Lathes (including turning centers) for removing metal. 29. 8459 Machines-tools (including way-type unit head machines), drilling, boring, milling, treading or tapping by removing, metal other than lathes. 30. 8460 Machine tools for deburring, sharpening,grinding, honing, lapping, polishing, or otherwise finishing metal, or cermets by means of grinding stones, abrasives or polishing products, other than gear cutting, gear grinding or gear finishing machines of heading 8461 31. 8461 Machine tools for planning, shaping, slotting, broaching, gear cutting, gear grinding or gear finishing, sawing, cutting off and other machine tools working by removing metal, or cermets, not elsewhere specified or included. 32. 8462 Machine tools (including presses) for working metal by forging, hammering or die-stamping machines tools (including presses) for working metal by bending, straightening, flattering, shearing, punching or notching, presses for working metal or metal carbides, not specified above. 33. 8463 Other machine tools for working metal, or cermets, without removing material. 34. 8464 Granite cutting machines or equipments. 35. 8464.20.00 Grinding or polishing machine 36. 8465 Machine tools (including machines for nailing, stapling, gluing or otherwise assembling) for working wood, cork, hone, hard rubber, hard plastics or similar hard materials. 37. 8466 Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465 including work or tool holders, self-opening die heads, dividing heads and other special attachments for machine tools; tool holders for any type of tool, for working in the hand. 38. 8468 Machinery and apparatus for soldering, brazing or welding, whether or not capable of cutting other than those of heading 8515, gas operated surface tempering machines and appliances. 39. 8476 Machinery for sorting, screening, separating, washing, crushing, grinding, mixing or kneading earth, stone, ores or other mineral substances, in solid (including powder or paste) form; machinery for agglomerating, shaping or moulding solid mineral fuels, ceramic paste, unhardened cements, plastering materials or other mineral products in powder or paste form; machines for forming foundry moulds of sand. 40. 8477 Machinery for working rubber or plastics or for the manufacture of products from these materials not elsewhere specified. 41. 8478 Machinery for preparing or making up tobacco, not specified or included else-where in the chapter 84. 42. 8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere. 43. 8480 Moulding boxes for metal foundry; mould bases; moulding patterns; moulds for metals (other than ingot moulds), metal carbides, glass, mineral materials, rubber or plastics. 44. 8485 Machinery parts not containing electrical connectors, insulators, coils, contacts or other electrical features, not specified or included else-where in chapter 84. 45. 8514 Furnaces and boilers of all types including fluidized bed boilers and ignifluid boilers and boilers using agricultural waste as fuel but not including boilers using municipal waste only as fuel. 46. 8543.30.00 Machines and apparatus for electro plating, electrolysis or electrophoresis. 47. 8803 Parts or items of heading 8801 or 8802. 48. 9024 Machines and appliances for testing the hardness, strength, compressibility, elasticity or other mechanical properties of materials (for example, metals, woods, textiles, paper, plastic) 49. Machinery for photography. [50. Clean Air Ventilation Systems /Air Handling Systems and the parts thereof used in Pharmaceutical Industry] [51. 8403 9000 Parts of central heating boilers other than those of heading 8402 52. 8404 9000 Parts of auxiliary plant for use with boilers of heading 8402 or 8403 (for example, economizers, super heaters, soot removers, gas recoverers); condenses for steam or other vapour power units 53. 8405 9000 Parts of producer gas or water gas generators, with or without their purifiers; acetylene gas generators and similar water process gas generators with or with out their purifiers. 54. 8406 9000 Parts of steam turbines and other vapour turbines 55. 8410 9000 Parts including regulators of hydraulic turbines, water wheels, and regulators therefore 56. 8411 9000 Parts of turbo - jets, turbo-propellers and other gas stubines 57. 8483 9000 Toothed wheels, chain sprockets and other transmission elements presented separately.]
103	Tools and Instruments that is to say — Sl. No. Heading No. Description of goods 1. 8202 Hand saws; blades for saws of all kinds(Including slitting, slotting or toothless saw blades)) 2. 8203 Files, rasps, pliers(including cutting pliers), pincers, tweezers, metal cutting shears, pipe-cutters, bolt croppers, perforating purchases and similar hand tools. 3. 8204 Hand operated spanners and wrenches(including torque meter wrenches but not including tap wrenches); interchangeable spanner sockets, with or without handles. 4. 8205 Hand tools (including glaziers diamonds), not elsewhere specified or included; below lamps; vices; clamps and the like, other than accessories for and parts of, machine tools; anvils; portable forges; hand or pedal-operated grinding wheels with frame works. 5. 8206 Tools of two or more of the headings 8202 to 8205 put-up in sets for retail sale. 6. 8207 Interchangeable tools for hand tools, whether or not - power-operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screw driving), including dies for drawing or extruding metal, and rock drilling or earth boring tools. 7. 8208 Knives and cutting blades, for machines or for mechanical appliances. 8. 8209 Plates, sticks, tips and the like for tools, unmounted of cermets. 9. 8210 Hand-operated mechanical appliances, weighting 10kg. or less, used in the preparation, conditioning or serving, of Food or Drink. 10. 8213 Scissors, tailor's shears and similar shears, and blades therefore. 8456 Machine-tools for working any material by removal of material, by laser or other light or photon beam, ultra sonic, electro-discharge, electro-chemical, electron beam, ionic-beam or plasma are processes. 11. 8467 Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or non-electric motor. 12. 9014 Direction finding compasses; other navigational instruments and appliances. 13. 9015 Surveying (including photogram metrical surveying), hydrographic, oceanographic, hydrological, meteorological or geophysical instruments and appliances, excluding compasses; rangefinders. 14. 9016 Balances of a sensitivity of 5 cg or better, with or without weights. 15. 9017 Drawing, marking-out or mathematical calculating instruments (for example, drafting machines, pantographs, retractors, drawing sets, slide rules, disc calculators); instruments for measuring length for use in the hand (for example, measuring rods and tapes, micrometers, calipers), not specified or included elsewhere in this Chapter. 16. 9019 Mechanotherapy appliances; massage apparatus; psychological aptitude-testing apparatus, ozone therapy, oxygen therapy, aerosol therapy, artificial respiration or other therapeutic respiration apparatus. 17. 9020 Other breathing appliances and gas masks, excluding protective masks having neither mechanical parts nor replaceable filters. 18. 9022 Alpha, beta or gamma radiations, whether or not for medical, surgical, dental or veterinary uses, including radiography or radiotherapy apparatus, x-ray tubes and other e-ray generators, high tension generators control panels, and desks, screens, examination or treatment tables or chairs and the like. 19. 9025 Hydrometers and similar floating instruments, thermometers, pyrometers, barometers, hygrometers and psycho meters, recording or not and any combination of these instruments. 20. 9026 Instruments and apparatus measuring or checking the flow, level, pressure or other variables of liquids or gases (for example, flow meters, level gages, manometers, heat meters), excluding instruments and apparatus of heading 9014, 9015, 9028 or 9032. 21. 9027 Instruments and apparatus for physical or chemical analysis (for example, polarymeters, refractometers, spectrometers, gas or smoke analysis apparatus); instruments and apparatus for measuring or checking viscosity, porosity, expansion, surface tension or the like; instruments and apparatus for measuring or checking quantities of heat, sound, or like (including exposure meters); micro tomes. 22. 9029 Revolution counters, production counters, taxi meters, milometer, pedometers and the like : speed indicators and tacho meters, other than those of heading 9014 or 9015; stroboscopes. 23. 9030 Oscilloscopes, spectrum analyzers and other instruments and apparatus for measuring or checking electrical quantities, excluding meters of heading 9028 : of instruments and apparatus for measuring or detecting alpha, beta, gamma, x-ray, cosmic or other ionizing radiation. 24. 9031 Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors. 25. 9032 Automatic regulating or controlling instruments and apparatus.
104.	Bolts, Nuts threaded or tapped and screws of base metal or alloys thereof including bolt ends, screws, studs, screw studding, self tapped screws, screw hooks and screw rings.
105.	All hardware of base metal or alloys and other hardware items like locks, woven wire nettings, mesh, cloth sieves, and chain link of all metals.
106.	Biomass briquettes
[107	Preserved fruits, vegetables, meat, poultry, sea foods and fish sold in sealed containers or in a frozen state. (b) Fruits jams, jelly, fruit squash, [Fruit pulp] fruit juices and fruit drinks but excluding aerated fruit drinks; (c) Cottage cheese (paneer), pickles, sauces, porridge, marmalade, honey;]
108.	Katha
109.	Wet dates
110.	Cups, plates and glasses made of paper
111.	Medical equipments/devises and implants
112.	Papad.
113.	Optical goods that is to say SI.No. Heading No Sub-heading No Description of goods 9004.9 Spectacles and goggles 9004.10.00 Sun glasses Spectacle glasses of lenses 9001.4 (I) of glass 9001.50.00 (ii) of other material 9003 Frames and mountings for spectacles, goggles or the like and parts thereof 9001.3 Contact lenses Lense cleaning liquid 9002.19.00 Intra ocular lens
[114.	Tea.
115.	Cashewnut and kernel.
116.	Sales of goods other than Petrol, all kinds of Diesel Oils including C9, petroleum gases, Lubricants, other minor petroleum products, Liquor, Automobiles, tyres and tubes and Cement, by a Registered Dealer to : (a) The State Government Departments. (b) Andhra Pradesh Power Generation Corporation (APGENCO) incorporated as a company under the provisions of Companies Act. (c) Transmission Corporation of Andhra Pradesh (APTRANSCO) incorporated as a company under the provisions of Companies Act. (d) Central Power Distribution Company of Andhra Pradesh Limited (APCPDCL). (e) Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL). (f) Eastern Power Distribution Company of Andhra Pradesh (APEPDCL). (g) Northern Power Distribution Company of Andhra Pradesh (APNPDCL).] [(h) The Kuppam Rural Electric Co-operative Society Limited, Kuppam. (I) The Cheepurupalli Rural Electric Co-operative Society Limited, Cheerupalli, Vizianagaram District. (j) The Anakapalle Rural Electric Co-operative Society Limited, Kasimkota]. [(k) Co-operative Electric Supply Society Limited, Sirsilla]. [(1)] Andhra Pradesh Power Development Company Ltd., (APPDCL)
[117.	Ayurvedic and Homeopathic products manufactured under license issued by the licensing authorities concerned under Drugs and Cosmetics Act, 1940]
118.	Molasses.
[119.	Goods such as components, accessories and spare parts of fire arms,weapons, guns, small Arms and ammunitions sold to the Ordinance factories, run by "Government of India].
[120	Tread Rubber and other material used for retreading of tyres]
[121.	The following goods that is to say: S1.No. Commodity HSN Code (1) (2) (3) 1. Switch made power supply systems (SMPS) Battery Chargers 8504.40.30-- 2. SMPS based integrated power supply systems (IPS) 8504.40.90 3. Electrical Transformers (dry type) 8504.31.00 4. Inverters/Converters 8504.40.10 5. Lt. Panels/AMF Panels/MCC Panels/PCC Panels/ Control and Relay Panels 8537.10.00 6. ACDB/DCDB 8537.10.00 7. Parts of above Panels. ACDB/DCDB 8538.10.10]
[122.	Oats]
[123	Mosquito nets insect screens, perimeter screens, meshes for insect protection, meshes for gardening and agro meshes, made up of plastic (polymer) and articles thereof].
[124.	[All kinds of portable Power Generator Sets]].
[125.	Lime, Burnt Lime, Lime Stone, Products of Lime, Dolomite and other white washing materials including Cem powder other than white cement].
[126	Purified Packged drinking water in bulk containers/ Cans and Sachets but excluding aerated mineral, distilled, Medicinal, ionic, battery and de-mineralized water.
[127.	Cotton fabrics, manmade fabrics, Woolen Fabrics, textile made ups, bed sheets, pillow covers, towels, blankets, travelling rugs, curtains, and embroidery articles excluding fabrics, made ups and garments made from handlooms/khadi cloth or produced and sold by the Powerloom units in the State to dealers registered under the Act at the point of sale in the hands of Powerloom units.
128.	Sugar excluding khandasari sugar].
[129	Bodies built on chassis of Motor Vehicles]
[130	Plastic Moulded Furniture, Purely made of Plastic and not containing any other material like Steel, Aluminium, Wood and Glass, etc.] Notes relating to Entry 100 in Schedule - IV 1. Note:— The Headings or sub-headings, as the case may be, listed under column Nos. (2) & (3) above are the HSN Codes under the Central Excise Tariff Act, 1985 (5 of 1986). 2. Note:— The Rules for the interpretation of the provisions of the Central Excise Tariff Act, 1985 read with the Explanatory Notes as updated from time to time Published by the Customs Co-operation Council, Brussels apply for the interpretation of this notification. 3. Note:— Where any commodities are described against any heading or, as the case may be, sub-heading, and the aforesaid description is different in any manner from the corresponding description in the Central Excise Tariff Act, 1985, then only those commodities described as aforesaid will be covered by the scope of this notification and other commodities though covered by the corresponding description in the Central Excise Tariff will not be covered by the scope of this notification. 4. Note:— Subject to Note 2, for the purpose of any entry contained in this notification, where the description against any heading or, as the case may be, sub-heading, matches fully with the corresponding description in the Central Excise Tariff, then all the commodities covered for purposes of the said tariff under that heading or sub-heading will be covered by the scope of this notification. 5. Note:— Where the description against any heading or sub-heading is shown as "other", then the interpretation as provided in Note 2 shall apply.
[6.	*Note:— In order to claim reduced rate of tax of 4% under the entry 100, the dealer shall be in possession of a declaration in the Form, as may be prescribed, and issued by the dealer purchasing such commoditiesfor the purpose of using them as industrial inputs.]
	[Explain I :- The goods mentioned at entry 57 shall be other than those described in column (3) of First Schedule to the additional Duties of Excise (Goods of Special Importance) Act, 1957].