Preamble
Andhra Pradesh Tax on Luxuries (Amendment) Act, 20011
| [Andhra Pradesh Act No. 40 of 2001] | [15th October, 2001] |
An Act Further to Amend the Andhra Pradesh Tax on Luxuries Act, 1987
Be it enacted by the Legislative Assembly of the State of Andhra Pradesh in the Fifty-second Year of the Republic of India as follows:-
SOR Statement of Objects and Reasons
STATEMENT OF OBJECTS AND REASONS
Chewing of Tobacco and its products are injurious to the health of consumers, therefore there is every need to discourage consumption of tobacco products. Hence, a provision was made by levying sales tax on ‘Gutka’ at the rate of 50 paise in a rupee, under Entry 194 of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957.
2. The Supreme Court of India in its judgment dated 25.1.2001 in Civil Appeal No. 625 of 1998 filed by Kothari Products Limited held that ‘Gutka’ is a tobacco product and is subjected to additional excise duty and therefore as per the Explanation to the Forth Schedule to the Andhra Pradesh General Sales Tax Act no sales tax can be levied on Gutka and consequently the Supreme Court struck down the inclusion of "Gutka" in entry 194 of the First Schedule to the Andhra Pradesh General Sales Tax Act.
3. It has, therefore been decided to leavy luxury tax on Gutka as is being levied on other tobacco products like Sukha, Surti etc., by making an amendment to section 2 and Schedule to the Andhra Pradesh Tax, on Luxuries Act, 1987.
4. As the Legislative Assembly of the State was not then in session having been prorogued and as it has been decided to give effect to the above decision immediately the Andhra Pradesh Tax on Luxuries (Amendment) Ordinance, 2001, (A.P. Ordinance 2 of 2001) has been promulgated by the Governor on the 1st May, 2001.
This Bill seeks to replace the said Ordinance.
Section 1. Short title extent and commencement
1. Short title extent and commencement.- (1) This Act may be called the Andhra Pradesh Tax on Luxuries (Amendment) Act, 2001.
(2) It extends to the whole of the State of Andhra Pradesh.
(3) It shall be deemed to have come into force on and from the 2nd May, 2001.
Section 2. Amendment of Section 2
2. Amendment of Section 2.- In the Andhra Pradesh Tax on Luxuries Act, 1987, (Act 24 of 1987) (hereinafter referred to as the principal Act) in section 2, in Clause (kkkk), for the words "Sukha and Surti", the words "Sukha, Surti, Gutka and other manufactured tobacco and manufactured tobacco substitutes; homogenised or reconstituted tobacco; tobacco extracts and essences", shall be substituted.
Section 3. Amendment of Schedule
3. Amendment of Schedule.- In the Schedule to the principal Act, in item 1, for the entry in column (2), for the words -Sukha and Surti", the words "Sukha, Surti, Gutka and other manufactured tobacco and manufactured tobacco substitutes, homogenised, or reconstituted tobacco; tobacco extracts and essences" shall be substituted.
Section 4. Repeal of Ordinance 2 of 2001
4. Repeal of Ordinance 2 of 2001.-The Andhra Pradesh Tax on Luxuries (Amendment) Ordinance, 2001 is hereby repealed.