TMI Blog1997 (4) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... ailway authorities of Eastern Railway at Moghal Sarai. For all these years, the dealer had declared no trading activity and vide assessment order dated March 16, 1990, for the assessment year 1986-87 and a common assessment order dated November 23, 1990, for the other assessment years it was declared to be non-taxable. Thereafter, some incriminating material was found during a survey held on March 20, 1991, and all the assessments were reopened under section 21 of the U.P. Trade Tax Act and fresh assessments were made. 4.. For the assessment year 1986-87, the assessing officer determined the turnover of iron scrap at Rs. 12,00,000 which was reduced to Rs. 7,00,000 by the Assistant Commissioner (Judicial) and to Rs. 3,60,000 by the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Sales Tax Act, 1956, is taxable under the U.P. Sales Tax Act (now U.P. Trade Tax Act) at the point of sale by manufacturer or importer. What is iron and steel has been specified in items (i) to (xvi) of clause (iv) of section 14. Item Nos. (i), (x) and (xiii) that are relevant are as under: (i) pig iron and cast iron including ingot moulds, bottom plates, iron scrap, cast iron scrap, runner scrap and iron skull scrap; (x) steel melting scrap in all forms including steel skull, turnings and borings; (xiii) fish plate bars, bearing plate bars, crossing sleeper bars, fish plates, bearing plates, crossing sleepers and pressed steel sleepers, rails-heavy and light crane rails; The above entries would show that iron scrap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d during survey indicated that iron scrap was sold to a rolling mill of Shahganj. He mentions that the dealer has not disclosed the source of acquisition of scrap though it had stated that it purchased the same within the State of U.P. In the assessment order for the assessment year 1987-88 the assessing officer states that Ashok Kumar, a partner of the firm, told him that during the year under consideration scrap worth Rs. 4,64,983 was purchased from Eastern Railway, Mughal Sarai. The dealer also produced the sale order in respect of this transaction. The genuineness of this purchase has been accepted. The assessing officer relied on an entry in the remarks column of the said sale order which stated that the purchaser had the right to cut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from outside State of U.P. The assessing officer has admitted that one document showed purchases from railways at Mughal Sarai. He did not bother to make any enquiries from the railway authorities nor mentions that he had any information that the scrap was purchased from any railway authority outside U.P. As regards cutting of the goods, apart from the entry in the remarks column of sale order, the authorities do not mention any evidence to show that in fact the goods were cut. What were those goods has also not been mentioned. The dealer is not mentioned to have admitted cutting of the goods. Ashok Kumar, a partner of the firm, who appeared before the assessing officer is not mentioned to have admitted cutting of the goods. Thus there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... too are claimed to have been purchased from the railways at Mughal Sarai. There is not even an iota of evidence that the dealer imported them from outside the State. Admittedly sale of timber is taxable if the sale is made by the Forest Department, the U.P. Forest Corporation or by private forest owner or by an importer. The revisionist is none of them. Therefore, the sale of old railway sleepers purchased by it in U.P. from the railways was not taxable under the Act. 18.. For the above reasons the revision petitions are allowed and partly setting aside the Tribunal s order dated February 13, 1996 in assessee s second appeal Nos. 636 to 639 of 1993 for assessment years 1986-87, 1987-88, 1988-89 and 1989-90 respectively. It is ordered tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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