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2014 (5) TMI 255 - HC - VAT and Sales TaxWhether Tribunal has erred in not classifying the top hat sections sold by assessee under Serial No.4(v) of the Second Schedule to the TNGST Act, 1959, in view of the words "Other Rolling Sections" found in that Entry – Rate of Tax - Classification - "Other Rolling Sections" – Held That:- In the absence of restrictive words in the entry relating to steel structurals as relatable to steel structurals used in building works or building structures alone, No justifiable ground found to treat the top hat section sold by the assessee could be treated as I Schedule goods as automobiles parts by reason of sale to the automobile manufactures – Relying upon INDIAN METALS AND FERRO ALLOYS LIMITED v. COLLECTOR OF CENTRAL EXCISE [1990 (11) TMI 143 - SUPREME COURT OF INDIA] the circumstances that certain processes are applied to the structurals or that to identify the particular type of tube one uses, different names are given is not sufficient to treat the article dealt with by the assessee, as automobiles component - So too the use to which the top hat section has been put into cannot be taken as a decisive factor for the purpose of understanding the width of the entry which is general in character - It is hold that the item in question is taxable as declared item under Entry 4 - The fact that the assessee had admittedly sold the top hat section to the automobile industries would not in any manner be a decisive test for the purpose of understanding the entry and rate of tax to be applied to the case on hand - Going by the entry, order of the Tribunal is set aside. Levy of penalty – Held that:- even though the Tribunal upheld the levy of penalty upto 75%, admittedly, the same was with reference to other heads of taxation - The Tribunal had cancelled the levy of penalty with reference to the non-inclusion of the turn over relating to top hat section - The penalty thus imposed at 75% instead of 150% however stands confirmed as no serious dispute is raised on this aspect -Revision) is allowed – Decided in favour of Assessee.
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