TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Railway's Supply of Scrap Not Taxable as Sale under U.P. Trade Tax Act</h1> <h3>Mukhya Rail Path Nirikshak Versus Commissioner</h3> The Allahabad High Court, in a judgment by Justice Prakash Krishna, ruled that the supply of cast iron scrap by a unit of Northern Railway to contractors ... - Issues: Determination of whether the supply of cast iron scrap to contractors constitutes a 'sale' under section 2(h) of the U.P. Trade Tax Act, 1948 for the assessment year 1988-89.Analysis:The judgment by the Allahabad High Court, delivered by Justice Prakash Krishna, addressed the controversy surrounding the supply of cast iron scrap by a unit of Northern Railway to contractors engaged in laying railway tracks. The primary question was whether this supply amounted to a 'sale' as defined in the U.P. Trade Tax Act, 1948. The applicant contended that providing scrap free of cost did not constitute a sale, while the authorities, including the Tribunal, held otherwise.The court noted that the applicant had entered into contracts with contractors for the supply of sleepers, agreeing to provide cast iron scrap at no additional cost. The key issue was whether this supply of scrap to contractors, ultimately used in the production of sleepers, qualified as a 'sale.' The court referred to a previous judgment where a similar issue was considered, and it was held that such transactions did not amount to a sale, thereby absolving the applicant from tax liability.Given the precedent set by the previous judgment, the court concluded that the supply of cast iron scrap by the applicant to contractors did not fall under the definition of a 'sale' as per the relevant provisions of the Trade Tax Act. Consequently, the court allowed the revision, set aside the orders of the lower authorities, including the Tribunal, and ruled in favor of the applicant, stating that no sales tax was payable on the said transactions.In conclusion, the judgment clarified the legal position regarding the supply of cast iron scrap by the Northern Railway unit, emphasizing that such transactions did not constitute a sale under the Trade Tax Act. The decision was based on established precedent and the interpretation of relevant legal provisions, ultimately relieving the applicant from any tax liability in this regard.
TaxTMI 
TaxTMI 
