9911796707
TMI Blog1996 (7) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... th of form IV for the purpose of manufacture of goods for sale can be said to have contravened the fifth proviso to section 5(1) of the OST Act if he transfers/supplies the finished products to its units for their consumption, and in case a portion of finished goods are utilised for self consumption? 3.. In case the answer to question No. 2 is positive, the turnover subject to contravention will be the value of finished products so contravened, or the value of material utilised for manufacture of such goods purchased on the strength of form IV? 2.. The reference has come to be made under the following background: Dealer is a manufacturer in cement. It is a unit under the Industrial Development Corporation (in short, IDC ) a public ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re held to be sales. Though several other contraventions were pointed out and the transactions were subjected to tax, we are not concerned with those aspects because the Assistant Commissioner granted relief in respect of some additions made. Further relief was granted by the Tribunal. 3.. Dealer s main grievance appears to be levy of tax on cement utilised for own constructions and those despatched to sister concerns. It is stated that there cannot be a sale to self. The ingredient of sale being transfer of ownership there was no question of levy of tax. The stand of the Revenue on the other hand is that the specific stipulations in respect of materials purchased on the strength of declaration have been contravened and therefore, levy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for sale and declaration being that the intention was to manufacture for sale there is no contravention when the manufactured article is put to any other use. 5.. So far as transfer of stock to other units of IDC is concerned, it has to be noted that each one of different units is separately registered under the Act, and they obtained separate registration certificate. As a matter of fact as has been indicated that different units of IDC having separate trading accounts, balancesheets and personal accounts. It has been accepted that transfer having been effected for the purpose of sale, that would attract taxability. On the other hand, it is fairly accepted that the transferee-units do not deal with commercial transaction in cement and ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
