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2010 (2) TMI 1087 - MADRAS HIGH COURTWhetehr the auction was to sell the machinery as scrap and even in the gate pass, it was described only as scrap and therefore, the successful bidder was liable to pay only the tax applicable to scrap? Held that:- It is the admitted case of the parties that the machinery was actually dismantled by the auction purchaser and it was transported out of the factory as metal scrap. Therefore, there was no question of repair or renovation of the machinery for the purpose of using it as machinery so as to take that transaction as one not coming within the purview of sale of scrap. The learned single judge has applied the correct test to determine the transaction involved in the matter. The learned judge was perfectly correct in his observation that the intention was to sell the machinery as scrap. The earlier communication of the sales tax authorities also confirms the said position. We do not find any material to take a different view in the matter. Appeal dismissed.
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