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2012 (2) TMI 462 - KARNATAKA HIGH COURTJoint Commissioner order exercising appeal jurisdiction - whether erroneous for the reason that the dealer/assessee who had claimed as an export sale insofar as manufacture of mould is concerned, for which the dealer had received payment in advance called as "tool development charges" amounts to a sale transaction attracting section 4 of the Act for the reason that the goods, i.e., the moulds were never actually exported, but remained with the dealer? Permanent wire tightener manufactured - whether classifiable within the scope of entry No. 67 of the Third Schedule to the Act as aluminium extrusions or as residuary entry taxable at the general rate of tax in terms of section 4(1) (b) of the Act? Held that:- In the instant case, though it is contended the goods never left the premises of the assessee and therefore, no sale in the eye of law, we find it difficult to accept this submission for the reason that the assessee has received payment and the moment the goods have come into existence, the payment is with reference to the goods so finished and the transaction gets completed and therefore, the assessee holds the goods on behalf of the buyer. View taken by the Additional Commissioner on this aspect in restoring the assessment order by setting aside the order is perfectly justified as, the moment the assessee had received the payment and payment is appropriated with reference to the identified goods the sale has taken place The words or phrase "aluminium extrusion" is one of many forms. Aluminium metal amongst many items described under this entry and what one can notice here is that several items in this entry are one fitting into a basic presentation of aluminium metal as a commodity either in moulds or in billets or in aluminium extrusion, etc. In fact, the assessee also has described that and sells it as permanent wire tightener and not as aluminium extrusion or any form of aluminium. May be the mould used is aluminium, but that in no way detracts from the end-product which is distinctly identified as a product and not merely as a form of aluminium in which the aluminium metal can be sold. It is for this reason we reject the argument that it should have been brought within the scope' of entry 67 of the Third Schedule to the Act. Decided against assessee.
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