TMI Blog1973 (4) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... partment and also components of Nissen huts from the Director of Supplies and Disposals, Madras, also sold in auction. He later dismantled the condemned railway coaches as also the Nissen huts and sold the resultant timber and iron materials in bulk. The assessing authority proposed to assess the entire turnover of the assessee's business of Rs. 1,99,411.32 as the first sale of scrap. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal purported to follow the decision of this court in T.C. No. 17 of 1964. Therefore, the only question that has to be considered in this case is whether the turnover relating to the assessee's sale of scrap iron is a second sale as contended by the assessee or whether it is a first sale as contended by the revenue. If it is only a first sale of scrap iron it could be taxed under the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lated the dismantling of the coaches and huts and getting the resultant scrap for sale later by the buyer, it has to be taken that the railways as well as the Director of Supplies and Disposals had intended to sell only the scrap iron and the wooden scraps found in the condemned articles sold by them in auction. The Tribunal, therefore, appears to be right in holding that what the assessee purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Schedule. It appears to us also impossible to hold that condemned articles come within the purview of item 23 in the First Schedule which relates to machinery including hardware, iron and steel. Hardware, iron and steel referred to there must be in the form of machinery. Iron scrap consisting of condemned articles can hardly be described as machinery under item 23 of the First Schedule." We hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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