https://www.taxtmi.com/caselaws?id=164534 Closed plant and machinery sold through a scrap-disposal arrangement was treated as scrap, not as reusable old machinery, because the plant had ceased operations, the licence was surrendered, and the contemporaneous tender documents, acceptance letter and gate pass consistently described the transaction as scrap sale. The purchaser dismantled the machinery and removed it part by part as metal scrap, confirming the commercial substance and intention to dispose of scrap rather than transfer machinery for continued use. On that basis, the higher tax demand applicable to old plant and machinery was not sustainable, and the sale was taxable only as scrap. en-us Fri, 26 Feb 2010 00:00:00 +0530 Wed, 15 Oct 2014 09:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164534 Closed plant and machinery sold through a scrap-disposal arrangement was treated as scrap, not as reusable old machinery, because the plant had ceased operations, the licence was surrendered, and the contemporaneous tender documents, acceptance letter and gate pass consistently described the transaction as scrap sale. The purchaser dismantled the machinery and removed it part by part as metal scrap, confirming the commercial substance and intention to dispose of scrap rather than transfer machinery for continued use. On that basis, the higher tax demand applicable to old plant and machinery was not sustainable, and the sale was taxable only as scrap. Case-Laws VAT and Sales Tax Fri, 26 Feb 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164534