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2019 (7) TMI 1343 - ALLAHABAD HIGH COURTWhether tax can be imposed on the sales of gunny bags, drums under the entry 'Old, discarded, unserviceable or obsolete machinery, store or vehicles including waste products, when neither gunny bags and drums were old, discarded, unserviceable or obsolete nor the same are machinery, store, vehicles or waste products? HELD THAT:- Merely because the assessee has been found to be a manufacturer or importer on deemed basis, it may not give rise to taxability of any sale performed by him. For the purposes of imposing tax, identification of the point of tax had to be necessarily made in terms of a pre-existing taxing entry. Insofar as, no identification has been made either by the Assessing Authority or the first appeal authority or the Tribunal of that taxing entry, it is difficult to sustain the imposition of tax on the assessee. Since all authorities have failed to examine that essential issue, no order of remand may be made at this stage as that would only amount to give second opportunity to the revenue to set up a new case. Insofar as the Assessing Authority did not find the assessee liable to tax with respect to any particular taxing entry and since appeal authority also failed to identify any pre-existing taxing entry whereunder the assessee had been subjected to tax, the assessee was not liable to suffer tax on old gunny bags, empty drums, film and rolls - Revision allowed.
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