2023 (12) TMI 431

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....aryana and another vs. M/s. A.P. Porcessors has been decided on 10.07.2023 after conversion to Civil Appeal No. 1311-2020. 2. Keeping in view the above, the application is allowed. 3. The main case is listed in the motion list. VATAP-22-2020 1. The present appeal has been filed under Section 9(2) of The Central Sales Tax, Act, 1956 read with Section 36 of the Haryana Value Added Tax Act, 2003 against the order dated 06.09.2019 (Annexure A-4) passed by the Haryana Tax Tribunal for the assessment year 2004-05. 2. Notice of motion. 3. Mr. Sharan Sethi, Addl. A.G., Haryana accepts notice on behalf of the respondents-State. 4. With the consent of counsel for both the parties, the main appeal is taken up being covered by the ....

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....hich tax is to be levied?" 6. The Haryana Tax Tribunal, vide order dated 06.09.2019 (Annexure A-4), dismissed the appeal wherein, the contention of the assessee was that tax is only leviable on the small part of dyes and chemicals used in the job work which is passed on to the cloth whereas the remaining chemicals and dyes are washed away and do not pass on to the cloth. The Tribunal had noticed that the Assessing Authority has accordingly levied tax by taking into consideration only 25% quantity of the chemicals used by the assessee and 100% quantity of dyes and, thus, the Tribunal noticed that the chemicals were determined proportionately at 25% of the total chemicals consumed as per industry trend on the integrated process of washing ....

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....aving arrived at the conclusion that chemicals used in the job work are taxable but the pertinent question to be answered would be as to how much of dyes/colours are taxable which is transferred to the fabric when the whole quantity of consumable is not transferred. In the present case, it would be essential to determine the value of consumables transferred in the goods on which tax is leviable. While determining the actual loss of chemicals, dyes and colours where the fabric or textile undergoes various processes depends upon factual aspect which can be considered only by the Assessing Officer where parties can produce evidence in respect of their respective claims/contentions. 27. In the light of legal position enunciated hereina....