https://www.taxtmi.com/caselaws?id=163206 Goods permanently closed, surrendered factory licence and sold only for dismantling and removal were treated as scrap under the Tamil Nadu General Sales Tax Act, not as plant and machinery. The court applied the real nature of the transaction and common parlance test, finding that condemned and unserviceable machinery sold on an as-is-where-is, no complaint basis for disposal was not taxable at the higher plant-and-machinery rate. The lower scrap rate applied, the impugned clarification was set aside, and the differential tax was directed to be refunded. en-us Mon, 17 Mar 2008 00:00:00 +0530 Wed, 10 Dec 2014 16:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=163206 Goods permanently closed, surrendered factory licence and sold only for dismantling and removal were treated as scrap under the Tamil Nadu General Sales Tax Act, not as plant and machinery. The court applied the real nature of the transaction and common parlance test, finding that condemned and unserviceable machinery sold on an as-is-where-is, no complaint basis for disposal was not taxable at the higher plant-and-machinery rate. The lower scrap rate applied, the impugned clarification was set aside, and the differential tax was directed to be refunded. Case-Laws VAT and Sales Tax Mon, 17 Mar 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=163206