9911796707
TMI Blog1988 (1) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment years concerned are 1st January, 1981 to 31st December, 1981 and 1st January, 1982 to 31st December, 1982. During the assessment years, the appellant had purchased aluminium scrap, in that pieces of aluminium metal as also old aluminium vessels, both of which were used in the manufacture of new aluminium vessels. These purchases were made from unregistered dealers, under the circumstances, no tax was leviable. There is also no dispute that the pieces of aluminium metals as also old aluminium vessels, which the appellant purchased, were used for manufacturing new aluminium vessels for sale. Therefore, the assessing authority proposed to levy tax on the purchase turnover of the old aluminium vessels also. The appellant, however, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luminium scrap and vessels of Rs. 46,453.25 made from registered dealers, the same having been purchased from registered dealers for which a list has been filed is being allowed. Further, the sales turnover of aluminium utensils up to 8th March, 1981 is adopted as per form 3 filed at Rs. 2,36,795.33 and consequently the exempted sales turnover of aluminium utensils works out as under." Accordingly, the purchase turnover relating to old aluminium vessels was also brought to tax. Aggrieved by the order of the assessing authority the appellant presented appeals before the appellate authority. Appeals were allowed accepting the contention of the appellant. The Commissioner, however, was of the view that the order of the appellate authority wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cases was that as cotton fabric was exempt from tax, the turnover was not liable to tax. Both the High Courts have taken the view that as the cotton fabrics were exempt from tax under the provisions of the Act, notwithstanding the fact that what was purchased was rags and chindhis of cotton fabric they still retained the character of cotton fabric and therefore not liable to tax even on their consumption in the manufacture of a different commercial commodity. On the same analogy the learned counsel submitted that old aluminium vessels purchased by the assessee, continued to be aluminium vessels and therefore the purchase turnover relating to old aluminium vessels was not liable to tax notwithstanding the fact that they were not sold as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... far as the pieces of aluminium purchased by the appellant is concerned, the appellant has stated that it was scrap and therefore taxable as a general item under section 5 of the Sales Tax Act. But the plea taken by the appellant was that as far as old aluminium vessels were concerned, as they were purchased as vessels and aluminium vessels are exempt from tax under the provisions of the Act, they could not be treated as scrap. 7.. In the present case, as pointed out by the Commissioner, admittedly the old aluminium vessels purchased by the appellant were not sold as vessels. In fact they were purchased only for its metal value. In other words, between the pieces of aluminium metal which the appellant purchased and the old aluminium 'vess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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