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2014 (3) TMI 569 - HC - VAT and Sales TaxTaxability of sale of unusable polyester yarn – Whether sale of "unusable Polyester yarn" by assessee was taxable as a waste product under Item 32 of notification no.ST-II-5785/X-10(1)-80-U.P. Act XV/48-Order-81 dated 7.9.1981, or it is taxable under Entry 55 of the Notification dated 7.9.1981 - Held that:- 'Polyester fibre yarn' was not capable of use for the purpose of manufacturing Zippers - the assessee admitted that it was a discarded unserviceable item and was sold as waste product - the revisionist himself having admitted that goods in question was not treated to be a yarn at the time of sale but 'waste product' - the Revenue rightly held that it was taxable on higher rate - despite the fact that initial burden lie upon Revenue but the onus shifted upon assessee to show that item in question, though shown by him as 'waste product' yet for the purpose of tax liability, it will be covered by different entry wherein lessor rate of tax is chargeable - the same has rightly been taxed under item 32 –Decided against assessee.
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