2003 (8) TMI 499

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....on Limited, Visakhapatnam, is a registered dealer under the Andhra Pradesh General Sales Tax Act, 1957 (for short, "the Act") dealing in all types of iron and steel products. The assessee purchased pig iron during the years 1983 to 1985 to an extent of Rs. 12,44,120 from registered resident dealers and manufactured ingot moulds from the said pig iron in its cast iron factory. Subsequently, the ingot moulds have become unserviceable in the year 1987-88 and they were broken and sold to resident registered dealers as scrap. The dealer claimed exemption on such sale of scrap on the ground that the pig iron from which the castings were manufactured were already suffered tax for which the Commercial Tax Officer negatived his claim on the ground t....

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....x Appellate Tribunal and the authorities below considered whether the disputed turnover consisting of sale of scrap was not exigible to tax as it arose from tax suffered material of pig iron. The disputed turnover has been described by the assessee as sale of used, broken and rejected iron casting. The assessee contended that they purchased pig iron during the years 1983-84 and 1984-85 from registered dealers and manufactured ingot moulds from the said pig iron in their casting iron factory and after they became unserviceable they have broken them and sold to the resident registered dealers. The Appellate Deputy Commissioner observed that the appellants did not adduce any proof to the effect that they have manufactured the ingot moulds from....

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....wn. The object is to tax sale of each commercial commodity and not the sale of the substance out of which they are made. Each commercial commodity becomes a separate object of taxation in a series of sales of that commercial commodity so long it retains its identity as that commodity. If there is any change in the commodity, it cannot be considered as the same commodity. The principles are enunciated in State of Tamil Nadu's case [1976] 37 STC 319 (SC).   6.. The assessee purchased pig iron from which they manufactured the ingot moulds. The ingot moulds were themselves finished and they were used in the process to obtain finished goods of iron and steel. The identity of the pig iron was lost with the manufacture of ingot moulds. ....