Retained consumables in textile processing must be determined by evidence before taxable turnover is computed.

Taxable turnover in dyeing and printing disputes must be determined on evidence of how much dyes, chemicals and colours remain retained in the fabric after processing. Because the extent of wash-out and retention had not been examined by the authorities below, final determination was not appropriate in appeal. The matter was remitted to the assessing authority for fresh factual enquiry, with liberty to both parties to adduce evidence, so that the actual retained percentage could be found and the turnover computed in accordance with law. The impugned order was set aside.

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Issues: Whether the question of how much of the chemicals, dyes and colours used in dyeing and printing of fabrics are retained in the textile, and consequently what amount can be added to taxable turnover, required factual determination by the assessing authority.

Analysis: The dispute turned on the actual percentage of dyes, chemicals and colours that remained embedded in the fabric after the dyeing and printing process. Since this issue had not been examined by the authorities below and depended upon evidence regarding the extent of wash-out and retention, it was not capable of final determination in the appeal. The proper course was to permit both sides to adduce evidence before the assessing authority, who could then determine the actual retained percentage and proceed in accordance with law.

Conclusion: The issue was remitted to the assessing authority for fresh factual enquiry, with liberty to both parties to produce evidence, and the impugned order was set aside.

Final Conclusion: The appeals were disposed of by directing a remand for reconsideration on the factual extent of consumables retained in the fabric and for consequential determination of taxable turnover.

Ratio Decidendi: Where the determination of taxable turnover depends on the factual extent to which consumables are retained or washed away in a manufacturing process, the issue must be decided on evidence by the assessing authority rather than finally adjudicated in appeal.

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