2000 (2) TMI 747 - SC - VAT and Sales Tax

Whether rubber that it bought the benefit of a notification (S.R.O. No. 641/81) issued by the State in exercise of power conferred by section 10 of the Kerala General Sales Tax Act 1963? Held that - Appeal dismissed. The Tribunal found taking into consideration the nature of the articles and the manner in which they were sold that they had been treated as condemned articles and not as articles which could be put to use again and accordingly should be treated as scrap. It was not only the intention of the buyer and the seller that was taken into account but the nature of the articles that were being sold and obviously the Tribunal was satisfied that they were really no more than scrap and found that they should be taxed accordingly. The High Court was therefore right in not interfering.

Summary

The Supreme Court of India dismissed the Revenue's appeal against the Kerala High Court's decision regarding compounded rubber and scrap. Compounded rubber was considered a finished product based on trade evidence. Scrap items were treated as condemned articles and taxed accordingly. The High Court's decision was upheld, and the civil appeals were dismissed.