State of Andhra Pradesh Vs Mayuri Film Distributors (Telangana High Court)
The Telangana High Court heard a Tax Revision Case filed by the Revenue challenging the order dated 09.02.2010 passed by the Sales Tax Appellate Tribunal (STAT) in TA No.143 of 2005. The respondent/assessee, M/s. Mayuri Film Distributors, was a registered dealer engaged in distribution of audio cassettes. For the assessment year 2000-01, the Commercial Tax Officer (CTO) initially proposed to levy tax on sales of audio cassettes at 12% under Section 5AA by treating the assessee as the trademark holder of “Mayuri.” The assessee objected, contending that audio cassettes were electronic goods taxable at 4%. The CTO ultimately levied tax at 8%, treating the goods as falling under Entry 38-D of the First Schedule to the Andhra Pradesh General Sales Tax Act.
The Appellate Deputy Commissioner partly remanded and partly dismissed the assessee’s appeal. It held that the levy under Section 5AA was proper and that the use of the word “Mayuri” did not alter the character of the transaction. It further held that, up to 31.12.1999, audio cassettes were taxable at 4% under G.O.Ms.No.252 dated 19.05.1995, while from 01.01.2000 they were taxable at 12% under Entry 10 of the First Schedule.
