9911796707
TMI Blog1999 (11) TMI 838X X X X Extracts X X X X X X X X Extracts X X X X ..... ons with regard to non-application of the mind by the revisional authority on the question of taxing defective pipes when it was specifically brought that there was no mention in the notice? (c) Whether there is any material to the Tribunal to hold that the petitioner is liable to tax on the sales of defective pipes and coils purchased locally when the assessing authority has held that these goods were not subjected to any process of manufacturing? (d) Whether the Tribunal is justified in holding that the end cuttings are different from what is being purchased? (e) Whether the Tribunal is right in holding that end cutting are not subjected to any manufacturing operation though there is a difference between the purchased and sold goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factured and sold. Revisional proceedings under section 21(2) of the Karnataka Sales Tax Act, 1957 were initiated on the ground that there were no classification of raw material and finished product and, therefore, it cannot be inferred that steel tubes manufactured and sold within the State of Karnataka were out of the raw materials which has suffered tax under the Karnataka Sales Tax Act. The set-off allowed as per explanation II of the Fourth Schedule was considered improper and the exemption given by the assessing authority on the end cuttings and defective and rejected coils and sheets was also found improper. The revising authority observed that the defective, rejected cuttings are different commodities specified in item XVI of entry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Karnataka. 6.. According to the evidence which has come on record, it is not in dispute that the items which have been sold and for which exemption was given by the assessing authority were not manufactured by the petitioner. They were the end cuttings or defective or rejections in the process of manufacturing of steel tubes. According to the Tribunal no manufacturing activity was carried to obtain end cuttings, defectives or rejections. The defective and rejections would be out of the raw material purchased and sold as it is, as at the time of manufacturing it was found that such raw materials are not fit for manufacturing. The end cuttings are those portions of the coil or raw material which are not fit for manufacturing end cutting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rejected, it will not be changing the basis nature or character of the commodity which has already been subjected to tax. If the tax is already been paid in the State of Karnataka, while purchasing such raw material, tax cannot be levied again, since the tax is payable at the first point. 9.. It is also contended that the revising authority has given a decision on the point of steel tubes without proper notice to the petitioner. That point may now be considered by the revising authority. 10.. In these circumstances, the order of the Tribunal is set aside to this extent and the matter is referred back to the revising authority to exclude the local purchases of defectives, rejections and end cuttings on which tax has been paid. Petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
