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Deputy Commissioner of Commercial Taxes, Madurai Division Vs. R.Y. Nadar and Co. - Court Judgment

LegalCrystal Citation
SubjectSales Tax;Civil
CourtChennai High Court
Decided On
Case NumberTax Case No. 178 of 1964 (Revision No. 119 of 1964)
Judge
Reported in[1966]17STC312(Mad)
AppellantDeputy Commissioner of Commercial Taxes, Madurai Division
RespondentR.Y. Nadar and Co.
Advocates:G. Ramanujam, Adv. for ;Government Pleader
Excerpt:
- .....the tribunal held, on a consideration of teh facts, that the material sold by the assessee was iron scrap which fell under item 4 of the second schedule of the madras general sales2. tax act, 1959, assessable at 2 per cent. the contention of the department was that it fell under ' machinery', item 23 of the first schedule. the term ' machinery' as defined in item 23 includes parts of machinery, hardware, iron and steel and all articles made therefrom. but when an article has been found to be iron scrap, as was done by the tribunal in this case, there is no scope at all for contending that it will be machinery or a part of it, or hardware or iron and steel falling within item 23. the assessee has been found to be a dealer in old scrap iron materials, and this is not susceptible of any.....
Judgment:
ORDER

Ramakrishnan, J.

1. The Tribunal held, on a consideration of teh facts, that the material sold by the assessee was iron scrap which fell under item 4 of the Second Schedule of the Madras General Sales

2. Tax Act, 1959, assessable at 2 per cent. The contention of the department was that it fell under ' machinery', item 23 of the First Schedule. The term ' machinery' as defined in item 23 includes parts of machinery, hardware, iron and steel and all articles made therefrom. But when an article has been found to be iron scrap, as was done by the Tribunal in this case, there is no scope at all for contending that it will be machinery or a part of it, or hardware or iron and steel falling within item 23. The assessee has been found to be a dealer in old scrap iron materials, and this is not susceptible of any doubt.

3. The learned Government Pleader wants us to admit the revision case for deciding that iron scrap, as found by the Tribunal, is an item of machinery. We are unable to see any reason for drawing such an inference. The revision case is dismissed.


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