1984 (3) TMI 369

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...., belonging to Life Insurance Corporation of India, one situated at Broadway and the other at Dr. Guruswamy Road, for Rs. 1,00,000 and Rs. 77,666.66 respectively, on the understanding that the said superstructure would be demolished and the debris would be removed. The assessee, after demolishing the superstructures, had sold the old iron and timber materials. The assessee is also a dealer in old ....

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..... The matter was taken on appeal by the assessee before the Appellate Assistant Commissioner, who also held that the assessee should be taken to be the first seller of the old iron and timber materials, since the Life Insurance Corporation of India is not a dealer and therefore its sale cannot be taken to be the first taxable sale inside the State. Thereafter, the assessee took the matter befor....

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....le. But this contention of the assessee overlooks an obvious fact. In this case, admittedly, the Life Insurance Corporation of India has not entered into any agreement to sell the old iron scrap materials as such. The agreement between the assessee and the Life Insurance Corporation of India is for the demolition of the superstructures and for clearance of the debris for a stated consideration. Th....

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.... scrap materials but they have merely sold the superstructures to the assessee for the purposes of demolition and for clearing the debris. The contract for demolition of the superstructures and clearance of debris cannot be split up as a sale of timber, as a sale of old iron scrap, and as sale of bricks, etc. Therefore, we are of the view, that there has been no sale of old iron scrap materials as....