Judgments
Judgments
  1. Home
  2. /
  3. High Court Of Judicature at Allahabad
  4. /
  5. 2004
  6. /
  7. January

Commissioner Of Trade Tax vs Jyoti Glass Works

High Court Of Judicature at Allahabad|28 May, 2004

JUDGMENT / ORDER

JUDGMENT Prakash Krishna, J.
1. This revision is at the instance of Commissioner of Trade Tax against the order dated July 5, 1995 passed by the Tribunal in Second Appeal No. 418 of 1994 for the assessment year 1991-92.
2. The opposite party is manufacturer and seller of hand-made glass phials/bottles. The account books of the dealer were rejected by the assessing authority. The dealer-opposite party has purchased the old broken glass pieces for the manufacture of hand-made glass phials. The assessing authority has levied tax on such purchases under Section 3-AAAA of the Act. The Tribunal has set it aside by the order under revision. In the revision following two questions have been framed :
"(1) Whether on the facts and in the circumstances as stated above, the Trade Tax Tribunal was legally justified to reduce the taxable turnover of the dealer, despite the fact that incriminating evidences on record indicate otherwise?
(2) Whether the Trade Tax Tribunal was legally justified to set aside the tax imposed by the assessing authority on the purchase of old broken glass pieces under Section 3-AAAA of the Act, despite the fact that the old broken glass pieces falls under the category of old discarded or unserviceable, obsolete machinery, stores, or vehicles including waste products..........and is taxable?"
3. Heard the learned standing counsel for the department and perused the record. The question No. 1 is basically a question of fact. The learned standing counsel could not point out any error in the order of the Tribunal on this issue. Therefore no interference is called for by this Court on the issue No. 1.
4. On the question No. 2 the case of the department is that the dealer is liable to pay tax on the purchases of old broken glass pieces under Section 3-AAAA of the Act as old broken glass pieces falls under the category of "old discarded unserviceable obsolete machinery stores" etc. In the present case the old broken glasses were purchased by the dealer not as a waste product but as raw material to manufacture and made glass phials/bottles. The broken glass may be waste for the seller but so far as the dealer-opposite party is concerned it is a raw material for him. The dictionary meaning of words "waste and waste products" have been mentioned in the judgment of this Court in the case of Commissioner of Sales Tax v. Tribeni Tissues Ltd. 1991 UPTC 988. The dealer-opposite party cannot be said to be either manufacturer or importer of old broken glasses. The Tribunal has rightly held that old broken glasses is a raw material for the dealer-opposite party and as such no tax under Section 3-AAAA on the purchases of this item can be levied.
5. There is no merit in the revision. The revision is dismissed.
Disclaimer: Above Judgment displayed here are taken straight from the court; Vakilsearch has no ownership interest in, reservation over, or other connection to them.
Title

Commissioner Of Trade Tax vs Jyoti Glass Works

Court

High Court Of Judicature at Allahabad

JudgmentDate
28 May, 2004
Judges
  • P Krishna