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of <h1>Court rules zinc mazak not tax-exempt alloy under Sales Tax Act.</h1> The court upheld previous decisions that zinc mazak does not qualify for tax exemption as an alloy under the U.P. Sales Tax Act. It was determined that ... - Issues:Whether zinc mazak is to be taxed as an alloy of zinc or as an unclassified item under the U.P. Sales Tax Act.Analysis:The case involved revisions filed by M/s. Ram Charan Kasera concerning the taxation of zinc mazak, an alloy used for die-casting, under the U.P. Sales Tax Act. The dispute centered on whether zinc mazak should be taxed as an alloy of zinc or as an unclassified item. The relevant notifications exempted sales of specific metals or alloys containing those metals only. The assessee argued that zinc mazak should be taxed as per the entry for copper, tin, nickel, or zinc alloys. However, revenue authorities disagreed, leading to a legal challenge.The primary contention was whether zinc mazak, which includes aluminium, magnesium, and copper along with zinc, qualifies as an alloy under the tax exemption entry. The assessee's counsel argued that the term 'any alloy containing any of these metals only' should be interpreted to include zinc mazak due to the presence of zinc. Additionally, the counsel highlighted the meaning of the word 'any' to support the argument that the alloy need not consist solely of the mentioned metals. The court was urged to reconsider a previous decision that held zinc mazak was not covered by the tax exemption entry.The court, after hearing arguments, upheld the previous decisions that zinc mazak does not fall under the tax exemption entry for specific metals or their alloys. Referring to past judgments, the court emphasized that the exemption was intended for metals or alloys prepared solely from the listed metals. The court rejected the argument that the term 'any' in the entry allowed for inclusion of alloys with additional metals. It was concluded that zinc mazak, containing foreign substances, does not qualify for tax exemption as an alloy under the relevant notifications.In light of the above analysis, the court dismissed the revisions, affirming that zinc mazak should be taxed as an unclassified item rather than as an alloy of zinc. The court found no grounds for reconsideration of the previous decisions and ruled that the assessee's outturn of zinc mazak was rightly treated as an unclassified item for tax purposes.
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