TMI Blog2014 (3) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... m Lal, DR For the Respondent: S/Sh. Aditya Sharma Inder jit Sharma, CAs PER BENCH : The Revenue has filed these four appeals against the consolidated impugned order of CIT(A), Jalandhar, dated 28.05.2012 for the assessment years 2007-08, 2008-09, 2009-2010 2010-2011 respectively. As the issue involved in all these appeals is common, these were heard together and are being disposed off by this consolidated order for the sake of convenience. 2. The grounds raised by the Revenue in ITA No.311(Asr)/2012 for the assessment year 2007-08 are reproduced hereunder, as the grounds raised in other appeals are also identical: 1. The Ld. CIT(A) has erred on facts and in law in holding that the Bagasses is not covered under the definition of scraps as per section 206(C) and therefore the assessee was not liable to collect tax at source. 2. That appellant craves to add or amend any ground of appeal before the appeal is finally heard and disposed off. 2. The brief facts are that the assessee is a Cooperative Society and is engaged in manufacturing of sugar. Inspection u/s 133A of the Income Tax Act, 1961 ( hereinafter called the Act ) was carried out at a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dhar, assessee filed an appeal before the Ld. CIT(A), who vide combined impugned order dated 28.05.2012 partly allowed the appeal of the assessee by holding that Bagasses are not scrap for the purpose of section 206C of the Act. He upheld the action of the AO in holding the assessee to be in default u/s 206C(6) of the Act in respect of sale of molasses and charging interest u/s 206C(7) of the Act. The Ld. CIT(A) finally held that in respect of the sale of Bagasses by the assessee, the assessee is not to liable to collect tax at source u/s 206C(1) of the Act and consequent demand raised u/s 206C(6) and the interest charged u/s 206C(7) of the Act are vacated and he directed the AO to modify the demand raised on account of non-collection at source and the interest payable b the assessee vide impugned order dated 28.05.2012 for the assessment years in dispute. Now, aggrieved by the order of the Ld. CIT(A), the Revenue has filed the present appeal before this Bench. 4. At the time of hearing, the Ld. DR relied upon the order passed by the AO and stated that the Ld. first appellate authority has wrongly held that the Bagasse is not covered under the definition of scrap as per provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sale of these items. Since the assessee has failed to collect the tax at source and the assessee is in default and liable to pay the tax involved to the c redit of Central Govt. A/c within the meaning of section 206C(6A) of the Act, the A.O. calculated the tax and interest in the impugned order for the assessment year in dispute. The Ld. CIT(A) after hearing both the parties in detail and thoroughly going through the definition of Molasses and Bagasses as well as the scrap and waste with the help of recent decision of ITAT Ahmedabad Bench in the case of Navnine Flourine International Limited vs. ACIT, TDS, Surat 14 ITR (Trib.) 481 as well as by relying upon the judgment of Hon ble Supreme Court in the case of Gurudevdatta VKSSS Maryadit vs. State of Maharashtra AIR [2001] SC, 1980 has held that adding meaning to the simple meaning laid down in the statute is against the principles of interpretation. The Ld. CIT(A) has considered the written submissions of the assessee thoroughly in which the assessee has contended that A.O. has given some reference regarding processing of petroleum products wherein various products emerge while processing of crude oil to petrol. These product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pon by the appellant, the Hon ble Tribunal have noted that the ordinary meaning of scrap and waste as had been provided in Oxford English Dictionary was:- (a) Scrap Small piece or amount of something especially one that is leftover after greater part has been used material discarded for reprocessing. (b) Waste- eliminated or discarded as no longer use ful or required. 13.1. Thus, scrap means something left behind from the bigger part,not serviceable, leftover, but something that could be used for reprocessing or bringing out raw material or other useful product. It may have insignificant value, since scrap produced in several industries is sold for large values, e.g. in the iron and steel industry. 14. In the process of manufacture of sugar, molasses is left behind after the sugar has crystallized from the syrup. Molasses cannot be used directly. Till some time ago, disposal of molasses used to be a big problem, as observed by the Hon ble Apex Court in the case of Atma Ram (Died) Thru LRs vs State of Haryana (2008)2 SCC 568. Hence, it was certainly waste and scrap earlier. However, with the development of technology, molasses are being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.2 After going through the well reasoned order passed by the ld. First appellate authority in which the ld. first appellate authority has elaborately discussed the issue in dispute and various decisions rendered by the Hon ble Apex Court as well as various other courts and finally covered the Molasses under the definition of Explanation (b) to Section 206C of the Act. As regards to Bagasse is concerned, he held that it should not be considered as scrap for the purpose of section 206C of the Act. In view of the above discussions and after going through the order of the ld. first appellate authority, we are of the view that the ld. first appellate authority has passed a well reasoned order, which needs not interference and accordingly we uphold the impugned order by dismissing the appeal filed by the Revenue. 7. Now, we take up appeals of the Revenue in ITA Nos. 312, 313 314(Asr)/2012. The facts of these cases are similar to the facts discussed supra in ITA No. 311(Asr)/2012. Therefore, applying the same ratio, we dismiss these appeals of the Revenue also. 8. In the result, all the four appeals of the Revenue are dismissed. Order pronounced in the open court on 19 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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