9911796707
TMI Blog1995 (11) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... nserviceable items and purchases on account of canteen, etc., in returns when it was considered by the Tribunal that these points were still debatable and had not been decided one way or the other?" 2.. The assessee is M/s. Bharat Aluminium Company Limited, a public sector undertaking. Assessment period in the present case is April 1, 1975 to March 31, 1976. The public sector undertaking is engaged in the production and sale of aluminium. During the assessment period, certain unserviceable jeep tyres, batteries and building materials, etc., were disposed of at a price of Rs. 37,588. Similarly, certain purchases were also made to the tune of Rs. 1,42,952 for the use in canteen. A purchase tax was levied on this amount also, as they were fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture, adventure or concern and irrespective of the volume, frequency, continuity or regularity of such trade, commerce, manufacture, adventure or concern; and (ii) any transaction of sale or purchase of goods in connection with or incidental or ancillary to the trade, commerce, manufacture, adventure or concern referred to in sub-clause (i), that is to say,- (a) goods of the description referred to in sub-section (3) of section 8 of the Central Sales Tax Act, 1956 (No. 74 of 1956), whether or not they ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel therefore submitted that we would have to find out whether the scrap is connected with the business of the company or not. Learned counsel also invited our attention to [1976] 37 STC 423 (SC) (District Controller of Stores v. Assistant Commercial Taxation Officer). This was a case of the Northern Railway wherein the Northern Railway sold out certain iron scrap and the question was whether such unserviceable iron scrap could be said to be exigible to sales tax or not. In this case, of course, answer was given in favour of the Revenue. Shri Seth, Government Advocate submitted that the Railways was dealing with iron, therefore, it was connected with business. 5.. This Court relying on the case of Burmah Shell Co. Ltd. [1973] 31 STC 426 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a textile mill and certain scraps were sold like second hand car, it was held that cost will be included in the taxable turnover and exigible to tax. The Full Bench of this Court in the case of Hukumchand Mills Ltd. [1988] 71 STC 101 wherein the assessee was manufacturer of cloth and yarn, certain discarded assets such as scraps, dyes, chemicals, obsolete machinery, coal, ash, etc., and other materials were sold, levy of tax was uphold and it was held that scrap is also taxable for sales tax. Thus, it was the consistent view of this Court that any material which is connected with or incidental to the business shall be liable to be taxed. Hence the cost of scraps sold by the assessee would be included in the turnover and is exigible to the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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