1999 (11) TMI 838

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....7? (b) Whether the Tribunal is justified in ignoring the contentions with regard to non-application of the mind by the revisional authority on the question of taxing defective pipes when it was specifically brought that there was no mention in the notice? (c) Whether there is any material to the Tribunal to hold that the petitioner is liable to tax on the sales of defective pipes and coils purchased locally when the assessing authority has held that these goods were not subjected to any process of manufacturing? (d) Whether the Tribunal is justified in holding that the end cuttings are different from what is being purchased? (e) Whether the Tribunal is right in holding that end cutting are not subjected to any manufacturing operation th....

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....ataka as well as from outside. The steel tubes are manufactured and sold. Revisional proceedings under section 21(2) of the Karnataka Sales Tax Act, 1957 were initiated on the ground that there were no classification of raw material and finished product and, therefore, it cannot be inferred that steel tubes manufactured and sold within the State of Karnataka were out of the raw materials which has suffered tax under the Karnataka Sales Tax Act. The set-off allowed as per explanation II of the Fourth Schedule was considered improper and the exemption given by the assessing authority on the end cuttings and defective and rejected coils and sheets was also found improper. The revising authority observed that the defective, rejected cuttings a....

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....Karnataka Sales Tax Act if the goods are manufactured in Karnataka. 6.. According to the evidence which has come on record, it is not in dispute that the items which have been sold and for which exemption was given by the assessing authority were not manufactured by the petitioner. They were the end cuttings or defective or rejections in the process of manufacturing of steel tubes. According to the Tribunal no manufacturing activity was carried to obtain end cuttings, defectives or rejections. The defective and rejections would be out of the raw material purchased and sold as it is, as at the time of manufacturing it was found that such raw materials are not fit for manufacturing. The end cuttings are those portions of the coil or raw mate....