1977 (2) TMI 46 - AT - Income Tax

Summary

Issues:
1. Dispute over liability under Central Sales Tax Act for 1971-72.
2. Sales return dispute at 3% and assessment of goods as 'declared goods' at 10%.

Analysis:
1. The first count involved a sale to Hasmukhlal & Co. Bombay-4, where the consignee did not honor the bill, leading to the appellants reselling the goods in September 1971. The turnover under the first bill was excluded as unfructified. The second count, a sales return within the financial year 1971-72, was confirmed by the State Representative, thus allowed.

2. Regarding the assessment of goods as 'declared goods', the appellant contended that the involved goods were 'steel' falling within Item 4 of the IInd Schedule. The AAC excluded certain sales from the category of iron and steel, but the appellants verified that only ENIA steel or 'silver steel' was involved, which they argued fell under the category of 'iron and steel'. The British Standards Institution publications and Indian suppliers' catalogues confirmed that 'silver steel' is a variety of 'steel'. The disputed turnover was held to be 'iron and steel' falling within the meaning of 'declared goods'.

3. The AAC's contention that the disputed article was not 'Iron & Steel' due to its composition and treatment was refuted. The Tribunal found no evidence to disentitle the treatment of the disputed goods as 'iron & steel'. The disputed turnover was deemed to relate to 'declared goods' and assessed at 3% instead of 10%.

4. Consequently, the appeal was allowed in favor of the appellants based on the above analysis and findings.