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2009 (2) TMI 791 - KERALA HIGH COURTEligibility for second sale exemption for the respondent confirmed by Tribunal - Held that:- Products made of copper, zinc, manganese, brass, bronze, magnesium, etc., are covered by entry 121 of the First Schedule which provide for tax on "metallic products" because the specific entries providing for the rate of tax on these items of metals cover only metal as such whatever be the form in which it is sold and not products made out of such metal. We therefore hold that the metal produced by the respondent in the form of sheets, rounds, circles, etc., from out of scrap metal cannot be treated as the raw material, viz., scrap purchased by them by paying tax. On the other hand the metal recovered from scrap purchased is a different product taxable at the relevant entries referred above. In fact utensils are a final product made out of metal recovered in various forms and so the utensils are not even comparable with the original metal, viz., scrap used for the production. We therefore hold that the respondent is not entitled to exemption on the sales turnover of copper and brass sheets, aluminium sheets, circles and utensils made and sold by them from out of scrap purchased by them because these commodities are different from raw materials, viz., scrap. We therefore reverse the order of the Tribunal and that of the first appellate authority and restore the assessment on the items sold by the respondent.
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