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TMI Blog2003 (5) TMI 483X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of 5 per cent of the turnover of furniture for certain defects. The assessing authority had also denied exemption in respect of the sales turnover of furniture sold to Cochin Export Processing Zone. The assessing authority had also denied deduction of the turnover relating to sales return. Being aggrieved by the assessment, the petitioner filed appeal before the Additional Appellate Assistant Commissioner of Agricultural Income-tax and Sales Tax I, Ernakulam, who by its order dated February 3, 1997 (annexure II), dismissed the appeal. In the Second Appeal filed by the assessee, the Tribunal reduced the addition from Rs. 61,715 to Rs. 31,200. However, the claim for exemption, based on a Notification S.R.O. No. 1177/87 and in respect of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s mentioned therein and that column No. 2 specifies industrial inputs, plant and machinery in relation thereto to industrial undertakings in Cochin Export Processing Zone. Counsel submits that the assessee had obtained and produced a certificate in the form in the Annexure II from the purchaser also. The counsel also submits that though furniture will not fall under "industrial inputs", it falls under "plant" and therefore the exemption claimed should have been allowed. The counsel also brought to our notice a decision in Scientific Engineering House P Ltd. v. Commissioner of Income-tax, Andhra Pradesh [1986] 157 ITR 86 (SC); AIR 1986 SC 338 (paragraph 11) at page 343 which, according to him gives wide meaning to the expression "plant". Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Government pleader also pointed out that with regard to the addition, the Tribunal had granted substantial relief to the assessee. 5.. We have considered the rival submissions. So far as the addition of 5 per cent under furniture for the defects, admittedly, the assessee had placed an order with the Bangalore party for purchase of ten bundles of steel furniture valued at Rs. 15,600 while the goods were under transport in a passenger bus from Bangalore to Ernakulam, it was detained by the Intelligence Inspector, Agricultural Income-tax and Sales Tax, Palghat on September 13, 1993 at Chandra Nagar, Palghat. The goods also got released on furnishing cash security. The case of the petitioner is that it did not receive the said goods. In f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the circular issued by the Commissioner. On the facts of the present case, we do not think it necessary to consider the legal aspects in this proceedings. 6.. Coming to the question of exemption claimed on the sales turnover of furniture supplied by the assessee to the Cochin Exports Processing Zone, it is seen that the assessee had claimed exemption on the basis of the Notification S.R.O. No. 1177/87. We have perused the said notification. As per the said notification, there is an exemption in respect of the tax payable under the Act on the sale of industrial inputs to industrial undertakings in the Cochin Exports Processing Zone, subject to the production of a declaration prescribed under the said notification obtained from the purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 1515/98 and 1727/93. 7.. The next issue is regarding the rejection of the claim for deduction of the turnover of sales return. The Tribunal has entered a clear finding that the assessee had not furnished any material or evidence in regard to the said claim. We also perused the order of the first appellate authority. It is not seen that the assessee had seriously contested the said matter before the first appellate authority. In these circumstances, we do not find any reason to interfere with the said finding of the Tribunal on this point. 8.. The resultant position is that the contentions regarding the addition and the sales return are rejected and the question of exemption based on the notifications S.R.O. Nos. 1515/98 and 1727/ 93 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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