1995 (1) TMI 314

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....essee manufactures washers and sold the remnants. The scrap sold by the assessee was not in the same form in which it was purchased. The remnants sold by the assessee was altogether a new marketable commodity, as the scraps purchased by the assessee has lost its identity after the process of manufacturing washers. Hence, according to the assessing officer what was purchased and sold by the assesse....

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....been preferred by the assessee. 2.. Learned counsel for the assessee submitted that what was purchased by the assessee is only a scrap. In the scrap, the assessee is making holes for the purpose of manufacturing washers and used to sell the remnants, in the market. When the scrap was originally purchased by the assessee, it was subjected to tax and, therefore, scrap sold by the assessee cannot ....

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....om the scrap purchased by it. Our attention was drawn to a decision of this Court reported in the case of Lakshmi Industries v. Deputy Commercial Tax Officer-VI, Madurai [1990] 77 STC 291. According to the facts arisen in this case the scraps were raw materials that were purchased by the petitioner for the manufacture of the shaped and finished materials and during process of moulding and manufact....

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....ated as an unclassified item for the purposes of assessment under the U.P. Sales Tax Act, 1948." But the facts arising in the present case are different. The assessee has not purchased any iron sheet. But the assessee purchased only M.S. scrap. Therefore, in the present case what was purchased as a scrap is sold as scrap with more holes in it. The remnant would not be useful for any commercial ....