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The State of Tamil Nadu Vs. Rambal Private Limited - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtChennai High Court
Decided On
Case Number Tax Cases Nos. 370 of 1969 (Revision No. 245 of 1969) and 328 of 1970 (Revision No. 219)
Judge
Reported in[1972]29STC526(Mad)
AppellantThe State of Tamil Nadu
RespondentRambal Private Limited
Appellant Advocate K. Venkataswami, First Assistant Government Pleader
Respondent Advocate T.V. Balakrishnan, Adv. for ;C.V. Mahalingam and ; S. Mathrubutheswaran, Advs.
Disposition Petition dismissed
Excerpt:
- 1. the assessee was engaged in the manufacture of machine screws at lattice bridge. it is a company and the object of the company should have been specified in the memorandum of association. :it does not appear that the sale of scrap which accumulates from time to time in the course of the manufacture of machine screws is intended to be part of the business of manufacturers of machine screws. the scrap has to be disposed of and the disposal of it does not necessarily indicate that it was in the course of business. the business, as we said, of the assessee is really manufacture of machine screws and not sale of scrap. on that view the tax cases are dismissed; there will be no costs.
Judgment:

1. The assessee was engaged in the manufacture of machine screws at Lattice Bridge. It is a company and the object of the company should have been specified in the memorandum of association. :It does not appear that the sale of scrap which accumulates from time to time in the course of the manufacture of machine screws is intended to be part of the business of manufacturers of machine screws. The scrap has to be disposed of and the disposal of it does not necessarily indicate that it was in the course of business. The business, as we said, of the assessee is really manufacture of machine screws and not sale of scrap. On that view the tax cases are dismissed; there will be no costs.


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