TMI Blog2019 (5) TMI 734X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has submitted declaration before the AO in requisite forms. CIT(A) has appreciated the facts in right perspective and rightly held that the assessee was not required to collect taxes at sources when sales were made as required under section 206C. We do not find any error in the order of the ld.CIT(A), hence, appeal of the Revenue is devoid of any merit. - Decided in favour of assessee. - ITA No. 1945/Ahd/2017 - - - Dated:- 20-3-2019 - SHRI RAJPAL YADAV, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER For The Revenue : Shri O.P. Pathak, Sr. DR For The Assessee : Shri B.R. Popat, AR ORDER PER RAJPAL YADAV, JUDICIAL MEMBER : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atter in appeal before the ldCIT(A). It has raised two fold submissions. In the first fold of contention, it submitted that the sales made by the assessee were not considered as scrap material, rather these were identifiable useful products, which have been extracted from the ship. On those sales, the assessee was not required to collect tax. It relied upon the decision of Hon ble Gujarat High Court in the case of CIT Vs. Priya Blue Industries Ltd., (2016) 65 taxmann.com 206 (Guj). In the second fold of contentions, it was submitted that section 206C(1A) mandates that any person responsible for collecting taxes under section 206C(1) was not required to collect such taxes if a buyer who is resident in India and such buyer f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le or things. It does not say that such declaration has to be obtained at the very same moment when sale is effected. In the present case, the assessee has submitted declaration before the AO in requisite forms. The ld.First Appellate Authority has appreciated this aspect and the finding recorded by the ld.CIT(A) reads as under: 5.5 The appellant has also argued that as the buyers of such goods have furnished declaration that the goods shall be used for the purpose of manufacturing / processing / producing articles or things and not for trading and they have given a declaration u/s.206C(IA) of the I. T. Act, 1961 therefore, the provisions of Sec.206C are not applicable in respect of items sold to them. I have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opment Corpn. Ltd. v. Income-tax Officer, TDS Ward, Davangere IT Appeal Nos. 1144 to 1146 (Bang.) of 2014 [AY 2009-10 to 2011-12] dated April 17, 2015, Hon'ble ITAT Bangalore Bench 'C' decided on the similar issue as under; Section 206C(1A) mandates that any person responsible for collecting tax under section 206C(1) need not do so if he obtains a declaration from the buyer that he is purchasing the goods for use in manufacturing, processing or producing articles or things. It does not say that such declaration has to be obtained at the very same moment when a sale is affected........... Recently, Hon'ble High Court of Gujarat in tax appeal No. 519 of 2016 Tax Appeal No.526 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture. He further has acknowledged the fact that since the details furnished in this forms prove about the due taxes having already been paid by the respective buyers the same will also be covered by the ratio of the judgment of the Hon'ble Supreme Court in the case of Hindustan Cocacola Beverage Ltd. (2007) 293 ITR 226. As the appellant has submitted Form 27C/27BA from the parties in question, the default computed by the AO is to be deleted. In view of above discussion, it is noticed that there is no violation of the provisions of section 206C of the Act in view of either the sale of specified products being that of non-excisable, non-scrap products, or the same being against receipt of declarations in prescribed form number 27C/27BA. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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