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2011 (6) TMI 399 - AT - Income TaxTax collected at source - whether an assessee who imports scrap and sells them in the local market, could be brought under the purview of section 206C - assessee contended that they are only traders; they are not into any manufacturing activity which would yield any scrap - Held that:- On perusal of record we find that the nature of goods imported by the assessee is scrap from demolished buildings and others and it is not generated out of any manufacturing process carried out by somebody. Assessee sold scrap but the scrap sold is not the scrap as defined in Explanation (b) to section 206C. The scrap sold was neither generated from the manufacture or mechanical working of materials nor was the scrap sold not usable as such. Therefore we exonerate assessee from the ambit of provisions of section 206C(1). Orders of revenue authorities set aside - Decided in favor of assessee
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