AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (4) TMI 955
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion of delay, the delay is condoned. Delay Condonation Application (IA/1/2023) is allowed. 2. The present Revision has been filed by the State against the order dated 03.04.2021, passed by the Commercial Tax Tribunal, Uttarakhand, Division Bench, Haldwani, whereby two Second Appeals filed by M/s S.R.F. Ltd. Kashipur have been allowed. The dispute in the above two Second Appeals was with respect to tax amount of Rs. 95,22,567/- and Rs. 28,024/- respectively. 3. For the Assessment Year 2011-12, vide order dated 27.03.2017 passed under Section 29 (4) read with Section 25 (7) of the Uttarakhand Value Added Tax Act, on the self-manufacture of Nylon Chips, the Assessing Officer, in the absence of Form-C assessed the total tax of Rs. 3,14,40,432....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and/ view on the nature of product, and accordingly higher rate of tax was sought to be applied. Section 29(1)(c) of the Act applies to cases, where department has applied the wrong rate of tax to the sale of a product, and desires to apply the correct rate of tax. The opinion of the department, on the nature of the product, remains the same. 5. In the present case, the department has taken a different view by changing the nature of the product, and not on account of wrong application of rates. Re-assessment, in such type of situation, is prohibited. The assessment order was a clear change of opinion, and was not under Section 29(1)(c). 6. The other ground taken by the respondent was that the impugned order was illegal, as Section 29(4) o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ent, fillers, such as glass fibre, minerals etc. and additives such as lubricants, antioxidant, colour master batches etc. is added to the molten polymer in an extruder. The compounded form of polymer comes out of the extruder in the form of strands, which is cut into small pieces with the help of a granulator. These small pieces are then packed and sold to the customers. The process of manufacture explained in the technical books, pertaining to manufacture of plastic, is the same, as is adopted by the respondent for manufacture of Polymer/ Nylon Chips. Hence, the Polymer/ Nylon Chips manufactured by the respondent are nothing, but "plastic granules". The respondent has referred to the Central Institute of Plastics Engineering & Technology ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the Act, or whether the liability of tax on this article is under any of the provisions of the Act due to not coming under the schedule also, the liability of tax on it will be at the rate of 13.5 percent of the unclassified category." 12. With respect to the first question, the Tribunal has referred to the provisions of Section 29(7) of the U.P. Commercial Tax Act, which reads as under : "29(7) Where the Commissioner, on his own or on the basis of reasons recorded by the assessing authority, is satisfied that it is just and expedient so to do, authorises the assessing authority in that behalf, such assessment or reassessment may be made within a period of eight years after expiry of assessment year to which such assessment or reassess....
X X X X Extracts X X X X
X X X X Extracts X X X X
....3 of Schedule-(II)(B) of the Act, the Tribunal had proceeded to examine the definition of "Plastics" considered in the judgment of the Hon'ble Supreme Court in Chemicals and Fibers of India Ltd. v. Union of India, AIR 1997 SC 558. The Tribunal, in paragraph no. 10 of its order, considered in detail the various definition of "Plastics". As considered in the case of Chemicals and Fibers of India Ltd. (supra), the definition of "Plastic" is given in Encyclopedia Britannica, Volume 18, Books Polymers and Resin 1, Hawley's Condensed Chemical Dictionary (13th Edition), Webster's Third New International Dictionary. With respect to the definition of "Granules", it is stated to be a piece of 2 to 4 millimeters, in which the shape of pebble, on the m....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l Institute of Plastics Engineering & Technology (CIPET), there is no change in the original material (raw material) in this manufacturing process. Hence, the manufacturing process relates to Nylon-6 of the respondent-company. Even the international organization, i.e. British Plastics Federation has also considered Nylon under the Plastics group. 19. Finally, the Tribunal observed that, even if plastic granules are Nylon Chips used in different industries, but the type of thing is Plastic, which is used as per the requirement. It is not necessary that these two items should be different items due to their use in different industries, and it has been accepted by the department that Nylon Chips have more strength, and is needed for better me....