2026 (7) TMI 446

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....of gold coin as bullion in uncoined form, liable to tax at the rate of 1% and not being treated as jewellery or the articles of gold taxable at the rate of 4%. As a consequence of its finding, the differential tax and penalty imposed, remitting the matter to the Assessing Officer to refix the tax and penalty accordingly on merit and as per law. 2. On considering the questions of law involved, this Court formulated the following the substantial questions of law: "(1) Whether the order of the Appellate Tribunal is correct in interpreting the sale of gold coin as bullion in uncoined form? (2) Whether the order of the Appellate Tribunal is right in law is correct in interpreting the sale of gold coin embossed with Goddess L....

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.... liable to pay tax on its turnover at the rate of 1% or at the rate of 4% in respect of gold coins imported from Switzerland and sold with the picture of Goddess Lakshmi. If the gold coins are considered bullion, the tax rate is 1%, if they are considered articles of gold or jewellery, the tax rate is 4%. 6. In this regard, the Kerala High Court had rendered a judgment in support of the assessee, holding that a gold coin with an embossed picture does not lose its character as bullion or convert into jewellery unless it is fitted with a hook or otherwise modified to be used as an ornament. Following these judgments, the Tribunal held that engraving the picture of Goddess Lakshmi on gold coins does not take away their character as bullion.....

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....ld or silver. The Shorter Oxford Dictionary gives the meaning of "bullion" as "gold or silver in the lump; also applied to coined or manufactured gold or silver considered as raw aterial". So also in Jowitt's Dictionary of English Law and Wharton's Law Lexicon we find that the following meaning is given for the word "bullion": "Uncoined gold and silver in the mass. These metals are called so, either when melted from the native ore and not perfectly refined, or where they are perfectly refined, but melted down into bars or ingots, or into any unwrought body, of any degree of fineness." It would, therefore, be seen that ornaments and other articles of gold cannot be regarded as "bullion" because, even if old and antiquated, they are n....