Iron scrap classification under sales tax law upheld; goods could not be treated as machinery or machinery parts.

Iron scrap found on the Tribunal's factual assessment could not be reclassified as machinery, a part of machinery, hardware, or iron and steel under the competing tariff entry. Once the goods were determined to be old scrap iron materials, item 23 of the First Schedule had no application, and the proper classification remained item 4 of the Second Schedule under the Madras General Sales Tax Act, 1959. The Madras HC sustained the Tribunal's classification and declined interference in revision, leaving the assessee's treatment of the goods undisturbed.

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Issues: Whether iron scrap sold by the assessee was classifiable under item 4 of the Second Schedule of the Madras General Sales Tax Act, 1959, or as machinery under item 23 of the First Schedule.

Analysis: The material was found by the Tribunal to be iron scrap, and the assessee was a dealer in old scrap iron materials. Once the article was determined to be iron scrap, there was no basis for treating it as machinery, a part of machinery, hardware, or iron and steel within item 23. The departmental contention sought to re-characterise the goods contrary to the Tribunal's factual finding, but the nature of the goods excluded classification under the machinery entry.

Conclusion: The goods were correctly held to fall under item 4 of the Second Schedule, and not under item 23 of the First Schedule. The revision was dismissed, in favour of the assessee.

Final Conclusion: The classification adopted by the Tribunal was sustained, with no interference in revision.

Ratio Decidendi: Where an article is conclusively found on facts to be iron scrap, it cannot be classified as machinery or as a part of machinery under a contrary tariff entry.

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