GOVERNMENT OF ANDHRA PRADESH

COMMERCIAL TAXES DEPARTMENT

PROCEEDINGS OF THE

AUTHORITY FOR CLARIFICATION AND ADVANCE RULING

(Under Section 67 of APVAT Act, 2005)

Present: Sri G. Lakshmi Prasad, Addl. Commissioner (Policy)

Sri. D.Venkateswara Rao, Jt. Commissioner ( Legal)

Sri V. Harshavardhan Jt.Commissioner ( Enft.)

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ADC Order No. 37 Dated 20th September, 2010

A.R.Com/ 3 /2010. Dated 20th September, 2010

Ref:- CCT's. Ref. No: PMT/P&L/A.R.Com/2005, Dated 13-04-2005.

O R D E R:

I. M/s Vishwakna Enterprises, West Marredpally, Secunderabad,(TIN 28033143640) have filed an application and sought clarification and advance ruling on the following items under Section 67 of APVAT Act, 2005 read with Rule 66(2)(i) of APVAT Rules, 2005 along with the application fee of Rs.1,000/-

II. They sought clarification on the following:

Rate of tax on Lead Acid battereies, sold to consumers as well as and manufacturers of UPS and Inverters, whether it is mandatory that they issue FORM 526 to the purchasers?

III. The applicant submitted the following documents:

IV. Mr. Alok Ratna, authorized representative, appeared for hearing and explained the case.

V. The issue has been examined with reference to the provisions of the APVAT Act and Rules and HSN Codes notified by Government vide G.O.Ms.No:398, Revenue (CT.II) Department Dated 31-03-2005 and G.O.Ms.No:490, Revenue (CT.II) Department Dated 15-04-2005 as superceded in G.O.Ms.No.1596, Revenue(CT-II) Dept. dt.27.08.2005, in G.O.Ms.No.1615, Revenue (CT-II), Dept. dt.31.08.2005,G.O.Ms.No.502, Rev. (CT-II) Dept., dt.1-5-2006 w.e.f. 1-5-2006, G.O.Ms.No.656, Revenue (CT-II), Dept. dt.2.06.2006 G.O.Ms.No.795, Revenue (CT-II), Dept. dt.29.06.2006 and the G.O.s issued till date and ruling is given as under:

VI. The applicant states that they are traders in Lead Acid Batteries which are sold to consumers as well as manufacturers of UPS and Inverters. They are charging VAT @ 14.5%.

They contended that manufacturing of UPS and Inverters using Lead Acid Battery is an industrial input with HSN Code 8507.20.00 as per sub-entry 224 of entry 100 of Schedule IV of APVAT Act. Hence requested to make it eligible to be sold @ 4% to such UPS and Inverters manufacturers subject to the fact that they issue FORM 526 to them.

The sub-entry 224 of Entry 100 of the IV Schedule enumerates "Valve Regulated Lead Acid batteries" with HSN Code No. 8507.20.00. In the Central Excise Tariff book Code mentioned 8507.20.00 enumerates " Other lead – accumulators"

Though the Form 526 is mentioned under entry 100 of the IV Schedule, as " the following goods, when sold as industrial inputs" the Government has kept it in abeyance till further notification.

Therefore the ruling is that all the goods, enumerated under various items under Entry 100 of the Schedule IV, appended to the APVAT Act, are liable to tax @ 4%, whether they are covered by Form 526 or not.

NOTE:- An appeal against this proceedings can be filed before the Sales Tax Appellate Tribunal, A.P. Hyderabad within 30 days of this ruling.

Addl/Jt.Commissioner