2009 (10) TMI 839

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.... revision filed by the assessee is whether acceptance of old gold ornaments as deposit and later return of the same in new ornament form can be treated as purchase of old gold ornaments and sale of new ornaments, respectively, attracting liability to tax on both purchase and sale. The Tribunal held against the petitioner and hence, this revision is filed before us. We have heard learned counsel ap....

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....ST 429 (Ker) [App]; [2009] 17 KTR 15 wherein this court has held that acceptance of gold deposit by a firm from the partners amounts to purchase for the purpose of liability for purchase tax. In this case, the position is worse inasmuch as the old gold ornaments taken as deposit from strangers are converted into new gold ornaments, accounted as stock-in-trade and then sold to customers. As and whe....

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.... The next issue to be considered is whether there is sale when the deposit is returned in the form of new gold ornaments from the stock-in-trade. Admittedly, the new ornaments returned are not the old ornaments deposited or new ornaments made therefrom, but the equivalent quantity from the stock-in-trade. Even though accounting pattern is not stated in the orders, there can be no doubt that wh....