Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 1983 (3) TMI HC This

  • Login
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

1983 (3) TMI 244 - HC - VAT and Sales Tax

Issues:
1. Assessment under Kerala General Sales Tax Act for the year 1972-73.
2. Taxability of river sand and charcoal under section 5A.
3. Liability for tax on the turnover of sale deemed to be involved in the supply of waste material.

Analysis:

1. The revision petitioner, an assessee under the Kerala General Sales Tax Act, challenged the assessment for the year 1972-73. The Sales Tax Officer levied tax under section 5A on the value of river sand and charcoal used in manufacturing concrete pipes. Additionally, there was a dispute regarding the turnover of sale deemed to be involved in supplying waste material to a contractor for making hollow bricks.

2. The petitioner contested the taxability of river sand under section 5A, arguing that the purchases were made from a contractor whose turnover exceeded the minimum taxable limit, making the petitioner not liable for tax under section 5A. The court clarified that section 5A aims to tax transactions where goods purchased are not liable to tax in the hands of the seller and do not return to the commercial stream for taxation. Since the seller of river sand had a taxable turnover, the petitioner was not liable to pay tax under section 5A for the purchase of river sand.

3. Regarding the liability for tax on the turnover of sale involving waste material supplied to a contractor, the court examined the definition of "business" and "sale" under the General Sales Tax Act. The court determined that if the by-products of the manufacturing process, termed as waste material, have commercial value and are sold by the dealer, such sales are considered part of the dealer's business and subject to tax. Therefore, the petitioner's contention that they were not liable to tax on the sale of waste material was dismissed, and the tax on the value of the waste material sold was upheld. The revision petition was disposed of with no costs.

 

 

 

 

Quick Updates:Latest Updates