TMI Blog2022 (1) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... n the aforesaid entry. Had the intention of the legislature to exempt all component used in manufacture of lower of shoe, which consists the lower of shoes, shank and heel, there was no requirement for specifically mentioning the sole in the entry no. 150 - The item sold by the applicant is only one of the component of lower of shoe which cannot be covered in the nature of lower of shoe because lower of shoe consists of three items i.e. outsole, shank and heel. Admittedly, the applicant is selling only shank as such it is not covered under the said entry i.e. Entry no. 150 because the entry does not refer lower of shoe and all its component. So far as the contention of the learned counsel for the applicant to that extent is rejected. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m and imposed the tax @ 12.5 % on the same. The following questions of law have been framed in the present revision:- (a) Whether, on the facts and in the circumstances of the case the Tribunal was legally justified in not treating the steel strip (shoe -shank) used in between the insole and sole of the shoe as iron and steel covered under the Entry No. 40 of schedule -II, Part -A of the U.P. VAT Act, 2008 and taxable @ 4 %? (b) Whether on the facts and in the circumstances of the case, the Tribunal was legally justified in not applying its mind to the alternative submission of the applicant that the steel strip (shoe -shank), is included in the Lower of Shoes as mentioned in the Entry No. 150 of Schedule II, Part C of the U.P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the same. Therefore, the matter may be remanded back to the Tribunal for considering the said fact. Per contra, learned Standing Counsel supports the order of the lower authorities and submits that the applicant is not selling lower of shoe but is manufacturing one of its component i.e. shoe shank which is used to manufacture the lower of shoe and therefore, the authorities below have rightly taxed the item as unclassified item and imposed the tax @ 12.5 %. The Court has perused the records. Admittedly, the applicant is manufacturing the shoe shank from steel strips and thereafter selling the same. The record further reveals that the strips, so manufactured, have the same chemical component as the raw material i.e. steel strips w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been manufactured by the iron strip as defined under Section 14 of Central Sales Tax Act, 1956, where iron strips has specifically been mentioned. The said ground has not only been taken before the Tribunal but also before the first appellate authority and same has not been considered by the authorities below. The Tribunal being the last Court of fact, in para 4 of its order has referred the argument of the counsel for the applicant but has not whispered a word about the said contention in its finding. In view of the aforesaid fact, the matter is remanded to the Tribunal for fresh consideration as to whether the item sold by the applicant can fall under the iron and steel as defined under Section 14 of the Central Sales Tax Act,1956 of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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