TMI Blog2019 (9) TMI 1125X X X X Extracts X X X X X X X X Extracts X X X X ..... s concerned, the appellant could not have been treated as assessee in default. However, the AO has written in his remand report that out of amount of ₹ 16,98,13,542/- which includes non-excisable, old and used plates etc, the items on which no relief is available as per judgment discussed above are clearly liable for TCS. But the AO has not given any working whether this amount includes such items on which relief is not available. At the time of assessment also the AO has not pointed out any discrepancy in the chart of sale provided by the assessee which shows a sale of ₹ 16,98,13,542/- in part 'B' which contains used plates, machinery and machinery part, fuel and oil, fire wood and wooden items and articles of iron steel anchor. These are the items obtained by the assessee in the course of ship breaking activity and these are 'usable as such' on which as per court decision in the case of Priya Blue [2015 (11) TMI 1216 - GUJARAT HIGH COURT] no TCS is to be collected, and therefore, do not fall within the definition of 'scrap'. Hence, the items shown in Part 'B' of the chart given by the assessee to the AO at the time of assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39; of arising on dismantling of ships on certain items aggregating to ₹ 16,98,13,542/- with contravention of Section 206C of the Act. The learned DR for the Revenue contended that the entire ship purchases for scrapping/breaking/recycling is 'scrap' for the purposes of Section 206C of the Act and the assessee has failed to collect TCS on certain sales of items (scrap) arising from such ship breakers. 4. The learned AR, on the other hand, relied upon the order of the CIT(A) and submitted that the assessee company is engaged in the business of ship breaking where the ships are demolished and sold in the market on itemized basis as 'finished product'. The learned AR for the assessee referred to the tabulated statement as appearing in at page nos. 3 4 of the order of the CIT(A) and submitted that the items which are liable for TCS has been subjected to the provisions of the Act and the assessee has duly collected TCS on these items as tabulated marked 'Part-A'. The assessee has also furnished Form 27-C and low tax collection certificate under s. 206C(9) in the cases where TCS has not been collected. However, the subject matter of dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity is in question. The CIT(A) has dealt with issue as under: 5.5 Grounds No. 4 to 7 are related to each other as are against the order u/s.206C(1) r,w.s.206C(6), 206C(6A) and 206C(7) of the I.T. Act, 1961 holding that the appellant was liable for collecting TCS of ₹ 27,60.838/-on the sales made of ₹ 24.36,74,974/-during the year under appeal and interest of ₹ 23,19,104/- u/s.206C(7) of the I.T. Act. 1961 for the said default in collection payment of TCS. The appellant has also argued that as the buyers of such goods have furnished declaration that the goods shall be used for the purpose of manufacturing/processing/producing articles or things and not for trading and they have given a declaration u/s.206C(IA) of the I.T. Act, 1961 therefore, the provisions of Sec.206C are not applicable in respect of items sold to them. 5.5.1 I have gone through the contents of the paper book filed by the appellant and also the remand report and the rejoinder thereon obtained during the course of the appellate proceedings. The appellant has submitted that the buyers of such goods have furnished declaration that the goods shall be used for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be utilized for the purposes of manufacturing process or producing articles or things or for the purpose of generation of power and not for trading purposes. The declaration to be made in sub-section (1A) of section 206C thus would enable the Revenue authorities to, as and when the need so arises make proper verifications. This sub-section itself does not provide for any time-limit within which, such declaration is to be made.......... After considering all the facts of the case and the judicial pronouncement by the Higher Authorities including jurisdictional High Court of Gujarat, it is concluded that there is no dispute that the delay in filing such forms with the office of the Department cannot revive the liability of collection of tax at source with retrospective effect and the subsequent submission of form 27C produced by the appellant may be considered. 6. I have noticed that there is no violation of the provisions of section 206C of the Act in view of either the sale of specified products being that of non-excisable, non-scrap products (to the extent of ₹ 16,98,13,542/-), or the same being against receipt of declarations in prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Edu. Cess S H Cess Tax Amt TCS+ TCS CES Total Amt Plates 129037606 20596927 411935 205976 5895338 117538 156265320 Misc. items 17000 0 0 0 2125 0 19125 Machinery machinery pans 3885000 0 0 0 98400 0 3983400 Fuel Oil 6543961 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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