2009 (10) TMI 839

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..... eturn of the same in new ornament form can be treated as purchase of old gold ornaments and sale of new ornaments, respectively, attracting liability to tax on both purchase and sale. The Tribunal held against the petitioner and hence, this revision is filed before us. We have heard learned counsel appearing for the revision-petitioner and the Special Government Pleader for the respondent. The .....

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..... y a firm from the partners amounts to purchase for the purpose of liability for purchase tax. In this case, the position is worse inasmuch as the old gold ornaments taken as deposit from strangers are converted into new gold ornaments, accounted as stock-in-trade and then sold to customers. As and when depositor demands return of gold, he is issued new gold ornaments from the stockin-trade. Since .....

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..... m of new gold ornaments from the stock-in-trade. Admittedly, the new ornaments returned are not the old ornaments deposited or new ornaments made therefrom, but the equivalent quantity from the stock-in-trade. Even though accounting pattern is not stated in the orders, there can be no doubt that when deposit is returned, necessarily depositors' account gets debited and since return of gold .....

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