1988 (1) TMI 338

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....: The appellant is M/s. Prabhat Rolling Metal Works, Amargol, having its industry at Amargol, Hubli. The assessment years concerned are 1st January, 1981 to 31st December, 1981 and 1st January, 1982 to 31st December, 1982. During the assessment years, the appellant had purchased aluminium scrap, in that pieces of aluminium metal as also old aluminium vessels, both of which were used in the manufacture of new aluminium vessels. These purchases were made from unregistered dealers, under the circumstances, no tax was leviable. There is also no dispute that the pieces of aluminium metals as also old aluminium vessels, which the appellant purchased, were used for manufacturing new aluminium vessels for sale. Therefore, the assessing authority....

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....ve purchased only scrap. I therefore overrule their contentions in this behalf. As regards purchases of aluminium scrap and vessels of Rs. 46,453.25 made from registered dealers, the same having been purchased from registered dealers for which a list has been filed is being allowed. Further, the sales turnover of aluminium utensils up to 8th March, 1981 is adopted as per form 3 filed at Rs. 2,36,795.33 and consequently the exempted sales turnover of aluminium utensils works out as under." Accordingly, the purchase turnover relating to old aluminium vessels was also brought to tax. Aggrieved by the order of the assessing authority the appellant presented appeals before the appellate authority. Appeals were allowed accepting the content....

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....m tailor shops for purposes of manufacturing paper was liable to tax. The contention of the assessee in each of the cases was that as cotton fabric was exempt from tax, the turnover was not liable to tax. Both the High Courts have taken the view that as the cotton fabrics were exempt from tax under the provisions of the Act, notwithstanding the fact that what was purchased was rags and chindhis of cotton fabric they still retained the character of cotton fabric and therefore not liable to tax even on their consumption in the manufacture of a different commercial commodity. On the same analogy the learned counsel submitted that old aluminium vessels purchased by the assessee, continued to be aluminium vessels and therefore the purchase turno....