9911796707
TMI Blog2009 (2) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by them by paying tax. On the other hand the metal recovered from scrap purchased is a different product taxable at the relevant entries referred above. In fact utensils are a final product made out of metal recovered in various forms and so the utensils are not even comparable with the original metal, viz., scrap used for the production. We therefore hold that the respondent is not entitled to exemption on the sales turnover of copper and brass sheets, aluminium sheets, circles and utensils made and sold by them from out of scrap purchased by them because these commodities are different from raw materials, viz., scrap. We therefore reverse the order of the Tribunal and that of the first appellate authority and restore the assessment on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring for the respondent. The assessment involved is for 1986-87 and relevant entries of the Kerala General Sales Tax Act, 1963 are the following: 115 Aluminium, aluminium alloys and all articles made of aluminium or/and aluminium alloys At the point of first sale in the State by a dealer who is liable to tax under section 5 116 Tin including tin sheets and tin plates - 116A Copper - 116D Brass - 116E Bronze - 121 All metallic products, or arti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by entry 121A of the First Schedule to the KGST Act which is taxable at the point of first sale in the State. In other words, in the absence of such an exclusion clause in entry 121A it is clear that the specific entries in the First Schedule providing for rate of tax on various items of metals do not cover the scrap form of such metals. This necessarily presupposes that the entries on metals provide for rate of tax on the said metal in its pure form. Metal is recovered in refining process either by processing the ore or through recovery from scrap. Both the processes involve elimination of waste and impurities and the process involves recovery of metal in its pure form. Metal recovered in any refinery may be in the form of ingots, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by paying tax. On the other hand the metal recovered from scrap purchased is a different product taxable at the relevant entries referred above. In fact utensils are a final product made out of metal recovered in various forms and so the utensils are not even comparable with the original metal, viz., scrap used for the production. We therefore hold that the respondent is not entitled to exemption on the sales turnover of copper and brass sheets, aluminium sheets, circles and utensils made and sold by them from out of scrap purchased by them because these commodities are different from raw materials, viz., scrap. We therefore reverse the order of the Tribunal and that of the first appellate authority and restore the assessment on the items ..... X X X X Extracts X X X X X X X X Extracts X X X X
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