1972 (9) TMI 135

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....ssing authority also levied a penalty of Rs. 270 for the year 1960-61 and Rs. 252 for the year 1962-63 under section 12(3) of the Act on the ground that the assessee had not submitted his turnover for the years in question. The assessee went in appeal, and the appellate authority affirmed the assessment on the turnovers in question for the two years but reduced the penalty from Rs. 270 to Rs. 135 for the assessment year 1960-61 and from Rs. 252 to Rs. 126 for the assessment year 1962-63. There were further appeals to the Tribunal, and the Tribunal had taken the view that industrial diamond will not fall within item 30 of Schedule I to the Act and that it will be assessable only at multi-point at the rate of 2 per cent. under section 3(1) o....

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.... stone, it is manifest that a precious stone must be a gem of value and beauty used for ornaments and it is only such diamonds, emeralds, rubies, pearls and sapphires, which are gems of value and beauty that will come under the definition of "precious stone" referred to in item 30 to Schedule I. It is not disputed that industrial diamonds are never used for ornaments and that they are fitted in tools and implements used for cutting and drilling, etc. It is neither a stone of such value and beauty as could be used for ornamentation, nor can it be called a gem or a jewel. The price of industrial diamond ranges only between Rs. 20 to Rs. 30 per carat while diamond as a precious stone would cost from Rs. 1,000 to Rs. 3,000. According to the rev....

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....tion and the setting in which the words, "diamonds, emeralds, rubies, pearls, etc.," have been used show that it is only precious stones which are used for the purpose of ornamentation that will come under that item. A precious stone is normally a gem stone noted for its rarity, beauty, lustre, hardness and high value. Diamond is a mineral compound solely of carbon and it is the hardest of all known substances. Its optical properties give it a beauty that makes it desirable as a gem. Industrial diamond is a by-product of gem industry and somewhat of low grade diamond without the requisite optical properties so as to make it a gem. Though the most distinctive characteristic of diamond is hardness and its hardness makes it valuable as an indu....