Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | a government undertaking and assessee for sale of iron and steel scrap to the assessee Sales tax: Agreement between NLC |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Sales tax: Agreement between NLC, a government undertaking and assessee for sale of iron and steel scrap to the assessee - Dispute arose between the sales authorities and the assessee as to nature of the article - According to authorities, the article was plant and machinery taxable @ 12% with 5% surcharge while as per assessee, it was scrap and liable to tax @ 4% - Held: Assessee is liable to pay sales tax @ 4% only - In the agreement between the NLC and the assessee, what was sought to be sold was iron and steel scrap and rejected/condemned and obsolete secondary arisings - Terms and conditions of e-auction also indicated that what was being sold was scrap - Moreover, there was an application by assessee to District collector for using explosives for dismantling the machinery - Sale in question was made by public sector undertaking and the said sale was conducted for and on behalf of another public sector undertaking - Selling agent was also engaged in the business of metal scraps - Sale took place 36 years after the purchase of machineries - Affidavit of NLC clearly established that those machineries became obsolete and condemned - It was also established from the contemporaneous documents that the plant and machineries had outlived its utility and had no value except scrap. |
Judge | N/A |
Neutral Citation | 2011 INSC 211 |
Petitioner | Commr. Of Commercial Taxes And Ors. |
Respondent | Chitrahar Traders |
SCR | [2011] 3 S.C.R. 910 |
Judgement Date | 2011-03-16 |
Case Number | 2686 |
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