Burden of proof in brass scrap classification shifts to Revenue once local purchase evidence is produced.

The Tribunal accepted the assessee's claim that the goods were locally purchased old utensils, not imported brass scrap. The assessee supported this position with transaction details, including sellers' names and, in some cases, addresses, and the assessing authority made no enquiry to rebut that evidence. Once the assessee discharged the initial burden, the onus shifted to the Revenue to disprove the claim, which it failed to do. On that factual basis, the assessee was treated as neither a manufacturer nor an importer of brass scrap and was held not liable to tax.

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Issues: Whether the assessee imported brass scrap or made local purchases of old utensils, and consequently whether the assessee was liable to tax as a manufacturer or importer.

Analysis: The Tribunal accepted the assessee's explanation that the goods were locally purchased and not imported brass scrap. The assessee produced transaction details, including names and in some cases addresses of sellers, and no enquiry was made by the assessing authority to dislodge that evidence. Once the assessee discharged the initial burden, the onus shifted to the Revenue to rebut the claim, which it failed to do.

Conclusion: The assessee was neither a manufacturer nor an importer of brass scrap and was not liable to tax.

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