9911796707
TMI Blog2003 (1) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... oner under which certain reliefs were granted to the appellant/assessee. 2.. The brief facts of the case are that the assessee is a registered dealer under the A.P. General Sales Tax Act, 1957 (hereinafter referred to "the Act"), and the Central Sales Tax Act, 1956 (hereinafter referred to "the CST Act"). It has got a re-rolling mill also. It purchases iron and steel scrap, not only for trading but also for re-rolling. During the relevant assessment year, the assessee purchased certain steel melting scrap and claimed that the same is not liable to tax, as the assessee is entitled for set-off on the finished products, i.e., re-rolled M.S. angles, etc. The assessing officer while framing the assessment, however, did not accept the claim. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee/dealer has come up with the present appeal. 3.. The learned counsel Sri P. Srinivasa Reddy contended that the assessee/dealer purchased unserviceable rails, which were used for re-rolling for the manufacture of M.S. rods, etc., and the said unused rails cannot be considered as an iron scrap. Equally, it could not be considered as a steel melting scrap, as the rails purchased by the dealer were not used for the purpose of melting, but used for the purpose of re-rolling and therefore, the same would not fall under entry 2-A of the Third Schedule, but would fall under item (xvi) of entry 2 of the said Schedule and if so, it is not liable to tax, at the last purchase as per entry 2-A of the Third Schedule. The learned counsel also co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for re-rolling without melting, the same would not fall under entry 2-A. When once the item purchased by the assessee would not come under item (ii) of entry 2-A, the other alternative item is only item (xvi) of entry 2, where the point of exigibility is the first sale point and therefore, the dealer is not liable to pay, as admittedly the assessee is not the first seller and on the other hand, he is only a last purchaser of the item in question. Hence, sought for setting aside the order of the Commissioner of Commercial Taxes. 4.. The learned Special Government Pleader for Commercial Taxes, on the other hand, supported the order of the Commissioner. According to the learned Government Pleader originally iron scrap and steel scrap w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rusal of the assessment order shows that the assessee is a registered dealer both in the APGST and CST Acts. He was trading in M.S. scrap, apart from running a steel re-rolling mill. A perusal of the assessment order clearly shows that the description of the purchase made by the assessee/dealer is shown as M.S. scrap, not that of any other description. The order also shows that part of the M.S. scrap purchased by the dealer was resold as trader, while part of it was used for the manufacture of other finished goods by way of rerolling. Though the assessee claimed exemption of the disputed turnover, the said claim was not accepted. In fact, the relief claimed by the assessee/dealer was on the ground that it is entitled for set-off in term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him, the said entry does not refer to melting scrap, which is fortified by the point to the levy specified, which includes purchases by electric arc furnace or induction furnace and other cases also, i.e., purchases by dealers, who are not going to melt it. Hence, revised the order of the Appellate Deputy Commissioner. 7.. The learned counsel for the assessee contended that the steel rails purchased by the dealer would not come under the term "steel melting scrap", but it would fall under item (xvi) of entry 2. Even according to the learned counsel, the used rails, which were purchased by the assessee/dealer, are sold as an item of scrap or waste, which is no more required for the purpose for which it was manufactured. Though the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed products, but do not refer to any item sold as a scrap or unserviceable item after using for certain period. Therefore, there is no merit in the contention of the learned counsel for the assessee that the rails purchased by the dealer would fall under item (xvi) of entry 2. Even assuming that the steel rails purchased by the dealer are not necessarily to be melted for the purpose of manufacturing any new item, still it falls under entry 2A, as the entry, which reads as iron and steel scrap, includes every type of scrap, whether meltable or otherwise. Even the Appellate Deputy Commissioner granted the relief to the dealer not on the ground that the disputed goods falls under entry 2(xvi), but on the ground that the dealer is entitled for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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