2008 (2) TMI 602 - SC - VAT and Sales Tax

Whether the copper sheets and brass sheets would fall under the entry Nos. 116A and 116D, respectively? Held that - Appeal dismissed. Having regard to the nature of evidence produced before the assessing authority in both the cases, the court is of the opinion that the authorities below as well as the High Court were justified in concluding that copper sheets and brass sheets in which the appellant deals would fall within the scope of entry Nos. 116A and 116D liable to be taxed at the rate of eight per cent of the turnover.

Summary

Issues:
Interpretation of entry Nos. 116A and 116D under the Kerala General Sales Tax Act, 1963 regarding taxation on copper sheets and brass sheets.

Analysis:
The appellant contended that entry Nos. 116A and 116D only apply to virgin copper and brass in solid form, not copper sheets and brass sheets. The court examined the entries which classified non-ferrous metals, including copper and brass. It was established that commercially, copper and brass are produced in various forms like sheets, circles, ingots, etc. The court rejected the appellant's argument that copper and brass sheets are not covered under the mentioned entries, emphasizing that these metals are available in the market in solid form, including sheets.

The appellant relied on a Government Order from 1982 to argue that copper and brass sheets were unclassified items. However, the court found that the Government's clarification was related to metallic products before April 1, 1984, and not specifically to copper and brass sheets. The court noted that entry Nos. 116A and 116D were introduced in 1984 to include metals like copper and brass, contradicting the appellant's claim.

The court dismissed the appellant's reference to a Supreme Court case regarding the distinction between metals and metal products, emphasizing that copper and brass metals are produced in various forms commercially. Drawing from a previous case, the court concluded that evidence presented to the assessing authority supported the classification of copper sheets and brass sheets under entry Nos. 116A and 116D for taxation at eight percent turnover. The court upheld the decisions of the lower authorities and the High Court, denying the appellant's appeal and ruling in favor of the tax authorities.

In conclusion, the court found no grounds to interfere with the High Court's decision, leading to the dismissal of the appeals without costs.