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TMI Blog2011 (6) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals is based on identical set of facts, for the sake of convenience, we decide all the four appeals by this common order. 2. The ground raised in these appeals by the assessee pertains to invoking of provisions of section. 206C of the Act and thereby raising demand of Rs. 3,17,214 for A.Y. 2009-10 and Rs. 7,93,430 for A.Y.2010-11 in each case. 3. The brief facts of the case noticed order of the assessing officer for A.Y.2009-10 are that the assessee, an importer and dealer in recycled ferrous and non-ferrous metals, mainly brass and copper, sold the said recycled metals to manufacturers as well as to certain other traders. A survey action u/s. 133A of the Act was carried out at assessee's premises on 23-02-2010. It was revealed to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accept the opinion given by a Chartered Accountant with regard to the applicability of Sec. 206C of the Act. 4. The learned A.R. submitted that the assessee is an importer and a dealer in the recycled non ferrous metal which is known as "scrap" among the local business community and assessed as such since long. The ld.AR pointed out that material imported by the assessee is being scrap which is derived from on dismantling of constructed residential and commercial buildings and other super structures. The ld. AR submitted that in their business line some of the materials called as "Honey Yellow Brass Scrap" which consists of mixed yellow brass solids, including brass castings, rolled brass rod brass. It is called "honey" as these materials ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Delhi High Court in the case of CIT v. Sumi Motherson Innovative Engg. Ltd. [2010] 195 Taxman 353 wherein it is held that the intention of the legislature is to be judged from the language used in the legislation that if the language is plain and unambiguous, effect is to be given without going behind the wisdom of the legislative and also regardless of the result. It is also a cardinal principle of interpretation of fiscal statutes that they should be construed strictly. The learned A.R. submitted that the issue is squarely covered in favour of the assessee by decision of ITAT, Ahmedabad Bench in the case of Navine Fluorine International Ltd., v. Asstt. CIT [2011] 45 SOT 86/10 taxmann.com 78 (Ahd.). 5. The learned D.R. on the other han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acted below: "(i) "scrap" means waste; and (ii) scrap from the manufacture or mechanical working of materials The above indicates that only 'waste' materials may partake the character of 'scrap'. This first limb of the definition definitely applies to the appellant's case, because he imports non-ferrous waste materials from dismantled buildings. This further conveys that there is no need to apply the second limb to the appellant (i.e.) scrap need not to have arisen from any manufacture, or mechanical activity, if the first limb is applicable and applied. 7. From the above it is clear that there is no dispute regarding the fact that goods (scrap) sold by assessee was not from the manufacture or mechanical working ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch amount as income-tax; TABLE Sl. No. Nature of goods. Percentage. (1) (2) (3) (i) Alcoholic Liquor for human consumption. One per cent. (ii) Tendu leaves Two per cent. (iii) Timber obtained under a forest Lease Two and one- half per cent. (iv) Timber obtained by any mode other than under a forest lease. Two and one- half per cent. (v) Any other forest produce not being Timber or tendu leaves Two and one- half per cent. (vi) Scrap One per cent:)" 9. From the above table appended below section 206C(1), item No.(vi) deals with "scrap" and it is stipulated that Every person, being a seller, shall, at the time of debiting of the receipt of such amount fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not escape from the rigors of provisions of section 206(1) of the Act. We are not inclined to accept this proposition made out by the revenue. Had it been the intention of the legislature that every section has to be read by its heading only, then there is no case for the legislature to come out with the sections, sub sections, clauses, Explanations, etc. Therefore, the heading of a provision in the Act cannot override the section, its sub sections, clause, Explanations etc. In the case on hand, the word "scrap" is adequately explained in Explanation (b) to section 206C which, in our opinion, for the detailed reasons narrated above, exonerates the assessees before us from the ambit of provisions of section 206C(1) of the Act. The other reas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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