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2018 (12) TMI 485 - HC - VAT and Sales TaxLevy of Tax - chemicals used as consumables in the process of job work of dyeing of fabric - property in the goods has passed on to the principals - Held that:- The matter is no longer res integra. This Court in a recent judgment in M/s AP Processors, Plot No.103, Sector 24, Faridabad through its partner Shri Arvind Jain vs. State of Haryana through Principal Secretary to Government of Haryana, Excise and Taxation Department, Civil Secretariat, Haryana, Chandigarh [2018 (5) TMI 1797 - PUNJAB AND HARYANA HIGH COURT] has already settled the legal issue against the respondent-revenue. Therein, after considering the relevant statutory provisions and the entire case law on the point, it has been concluded that the chemicals used in the job work are taxable but the pertinent question to be answered would be as to how much of dyes/colours are taxable which is transferred to the fabric when the whole quantity of consumable is not transferred. The tax on the entire value of chemicals consumed during the process of dyeing and job work are not to be included for the purpose of levy of VAT as substantial portion of the same is not transferred to the principal eventually. The matter is remanded to the Assessing Officer to decide the matter afresh.
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