TMI Blog1979 (7) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Tribunal, Additional Bench, Kozhikode. The assessment year is 1971-72. The assessee is a dealer in rubber seals. The question that has been agitated is whether rubber seals are liable to be taxed at the rate of 7 per cent under item 5 of the First Schedule to the Sales Tax Act, or alternatively, at the general rate under section 5 at 3 per cent; or are not liable to be assessed at all on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... axed was Rs. 8,000. The assessee replied that his purchases are supported by bills and produced the bills for scrutiny. It was after scrutiny and consideration that the Sales Tax Officer gave effect to his proposed assessment and assessed the rubber seals at 7 per cent and also added an estimated turnover of Rs. 8,000 by way of purchases under section 5A of the Act. 2.. On appeal by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner. 3.. Aggrieved by this order of the Sales Tax Appellate Tribunal, the revenue has filed this tax revision. 4.. We will first deal with the question of the addition of an estimated turnover with respect to section 5A purchases. As stated, the reassessment had been preceded by a pre-assessment notice, which indicated that section 5A purchases had been effected by the assessee and thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dule at 7 per cent or at the lower rate of 3 per cent under section 5, or is not assessable at all as a contract for work and labour, we are afraid the Tribunal has not approached the consideration of the question from the correct standpoint. The question for consideration would really be whether there was an intention to transfer the rubber seals as a chattel and to pass property in the same as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are "rubber products" within the meaning of this item. If assessable at all, they would be assessable only at 3 per cent under section 5 of the Act. For a proper determination of the question, we would set aside the order of assessment and remand the matter back to the Tribunal for fresh disposal in accordance with law and in the light of the observations contained in this judgment. There will be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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