Taxability of consumables in textile job work turns on factual proof of the quantity actually transferred into the fabric.
Taxability of dyes, colours and chemicals used in textile job work under the Haryana VAT Act depends on the quantity actually transferred into the fabric, not merely on their use in the process. Where the extent of embedded or retained consumables requires factual determination, the Assessing Officer must conduct an evidentiary enquiry and value the goods in accordance with law. A remand for that purpose is sustainable when supported by binding precedent, and the assessment must proceed on the basis of the actual quantity transferred.
Issues: Whether the Tribunal's order remanding the matter for fresh determination of the taxable value of dyes, colours and chemicals transferred in the course of job work under the Haryana Value Added Tax Act could be sustained.
Analysis: The earlier Division Bench decision had held that chemicals used in job work are taxable, but the extent of tax depends on the quantity of dyes, colours and chemicals actually transferred or retained in the fabric. The matter was therefore remitted to the Assessing Officer to undertake a factual enquiry, permit the parties to adduce evidence, and determine the value of the consumables embedded in the textile in accordance with law. That decision was thereafter carried in appeal to the Supreme Court, which declined interference and dismissed the appeals, leaving all contentions open before the Assessing Officer. In view of that binding outcome, the present appeal raised no surviving question against the Tribunal's remand order.
Conclusion: The Tribunal's remand order was correctly upheld and the appeal failed.
Final Conclusion: The legal position on taxability of consumables used in textile job work stood settled against the appellant, and the assessment had to proceed on the basis of factual determination of the quantity actually transferred.
Ratio Decidendi: Where the taxability of consumables in job work turns on the extent of goods actually transferred, the Assessing Officer must determine the factual quantity embedded or retained, and a remand for that purpose is sustainable when supported by binding precedent.
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