Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

The State of Andhra Pradesh Versus M/s Polygone Refractories Ltd

2015 (9) TMI 359 - ANDHRA PRADESH HIGH COURT

Classification of Fire Bricks – Entry 32, schedule I and Schedule VII – Assessing authority taxed sale of fire bricks as goods falling under entries 32 of 1st schedule – Deputy Commissioner revised order of authority treating them as unclassified goods / general goods falling under Schedule VII – Tribunal vide impugned order set aside order of commissioner and classified goods under entry 32 – Held that:- usage of these refractory bricks in regular construction work cannot be ruled out, especial .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

specific entry being there generic and natural meaning had to be given to entry and same would have to be taxed as falling in same entry – Thus, Revision dismissed – Decided against revenue. - T.R.C. No. 73 of 2002 - Dated:- 30-6-2015 - G Chandraiah And Challa Kodanda Ram, JJ. For the Appellant : Sri Anil Kumar Learned Special Government Pleader for Telangana For the Respondent : Sri M.V.J. Kumar ORDER (Per GC,J) This revision case is filed by the Revenue against the order dated 07.02.2002 pass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s required to be considered. Assessee is a manufacturer of refractory bricks. It is the case of the petitioner as well as the authorities that the bricks that are being manufactured by the petitioner are of special and different category of bricks from that of the bricks which are used in the construction industry. Bricks manufactured by the petitioner have a specific purpose of utilizing the same in heat treatment furnaces and other furnaces such as kilns, blast furnaces, and steam boilers etc. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rate of tax under entry 32 is 5%, whereas the same is 6% for the goods falling under Schedule VII. The assessee filed appeal before the Tribunal and the Tribunal accepted the contention of the dealer that the goods would be classifiable under Entry 32 of 1st Schedule and the Tribunal had dealt with the matter stating that According to the Concise Oxford Dictionary, the Brick means a smell, use rectangular, block of fired or sun-dried clay used in building. It is also stated to be similar block o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

se of construction used to be made of clay and sand, the modern technology necessitated the use of other materials like concrete etc., in making bricks for the purpose of construction. But, whatever may be the material used and irrespective of the special design, the commodity remains bricks for the purpose of Entry 32 of the 1st Schedule if it is made for the purpose of construction and is used in the construction of structures like buildings, kilns, etc., It is not disputed that these fire bri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in (1993) 16 APSTJ 115. The Honble Supreme Court also considered the sun-dried bricks as nothing but bricks Though they are different from over-baked bricks and carry lesser prices and having less strength than baked bricks. Thus, end user test is the predominant test to be applied in the case of fire bricks are considering whether they fall under Entry 32 of the 1st Schedule and fire bricks fully satisfy this test. The fire bricks are nothing but bricks in shape, nature and use and as understo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

be set aside. In the result, the T.A. is allowed settingaside the impugned order of revision made by the Deputy Commissioner. 4) The Tribunal also took note of the fact that on earlier occasion in the case of Navodaya Ceramics & Pottery Manufacturing Industries Co-operative Society Limited, Tadikalapudi Vs. The State of A.P. 16 APSTJ 115. The Tribunal had held that the bricks would fall under Entry 32 of the 1st Schedule. A reference was also made by the Tribunal on the judgment of the Supr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ence in price of the sun-dried bricks vis-avis fire burnt bricks, thereby theSupreme Court recognizing the fact that both bricks are distinct category. In that view of the matter drawing an analogy learned Special Government Pleader for Taxes (Telangana) submits that the refractory bricks could not be said to be the bricks falling under the Entry 32 as the other items mentioned in the Entry 32 are predominantly used in the construction industry, whereas, the refractory bricks are of special natu .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n the face of the finding of the Tribunal that these bricks are also can be used for the purpose of construction as the bricks manufactured by the dealer would squarely fall under the Entry 32 and they cannot be brought under unclassified goods under Schedule VII. He also would submit that the order of the Tribunal taking similar view on earlier occasion in Navodaya Ceramics case (Supra) has become final as there was no appeal filed against the same. By placing reliance on the judgments of the S .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

axes (Telangana), Sri Anila Kumar, so far as the aspect that there are two distinct categories of bricks; (1) the bricks which are used in the construction industry and others (2) which are specifically used for industrial purpose. However, it is also cannot be ruled out the usage of these refractory bricks in the regular construction work as well, especially considering the fact of their quality of heat resistance. Further, while a close reading of the judgment of the Supreme Court in Advance B .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s, tax under Section 15 of the Act may be levied at the first stage of sale thereof and on the issue of such notification, tax on such goods shall be levied accordingly. Brick under the notification is taxed at the first point of sale.The dealer claimed deduction on the basis of the notification by maintaining that he had purchased the bricks from the manufacturer and at that point had paid the tax. Thus a second set of tax in the hands of the dealer was not exigible. The reasoning given by the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version