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2011 (3) TMI 1420 - SUPREME COURTVAT / Sales tax on sale of scrap - whether sales tax is leviable and payable on the articles at four per cent as the plant and machinery was sought to be sold as scrap or whether the respondent is liable to pay sales tax at 12 per cent with five per cent surcharge also - appellants has submitted that what was sold was plant and machinery and not scrap at the agreement stage as is indicated from the acceptance letter and that it is only subsequently and during the post-contract period only, the said plant and machinery was removed as scraps after dismantling them and dividing the articles into several lots and taking away the same by getting 100 gate passes and challans issued – Held that:- plant and machinery had outlived its utility and had no value except as scrap, respondent has paid sales tax and surcharge at the higher rate of 12 per cent and five per cent while taking the goods out of the factory premises, respondent becomes entitled for refund of overpaid amount, appeal is dismissed
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