Andhra Fuels Private Limited Vs State of Andhra Pradesh (Telangana High Court)
Telangana High Court held that natural gas sold by the petitioner falls under entry 23 of 6th Schedule of the Andhra Pradesh General Sales Tax Act, 1957 [APGST Act 1957] and not under entry 118 of 1st Schedule.
Facts- These instant Tax Revision Cases are filed by the petitioner u/s. 22 (1) of the Andhra Pradesh General Sales Tax Act, 1957 challenging the orders, dated 17.10.2007 passed by the Sales Tax Appellate Tribunal, Hyderabad.
The issue that emerges for consideration before the Assessing Officer was whether the ‘natural gas’ falls under entry 118 of the 1st schedule or whether it falls under entry 23 of 6th schedule?
Conclusion- Held that the findings given by the Tribunal holding that the natural gas sold by the petitioner falls under entry 23 of 6th schedule is proper and the contention of the petitioner that it is a specific entry over any general entry has to be applied. In the present facts of the case, it cannot be accepted for the reason stated above. Further, this Bench does not find any error committed by the STAT that natural gas and petroleum gas can be equated as similar basing on the usage and that the natural gas consists of methane and other gases like ethane, propane, and butane. While the petroleum gases are essentially ethane, propane, and butane, except the methane and both the products are predominantly same.
