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2010] CST v. Ashish Automobiles (All.)
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the Tribunal held that the fabricated body over the chassis constituted no
new item. The fabrication of body over chassis did not amount to
manufacture. In fabricating the body over chassis, no change of form or
condition took place, and in these circumstances, no tax was liable to be
imposed under section 3AAAA.
On revision :
HELD
The chassis alone had no meaning to the customers who could not use the
chassis alone without having the fabricated body over it. After fabricating
the body, the tempo was saleable item in the market. The purchase of the
chassis against Form 3A was not in dispute. In these circumstances, the
Tribunal rightly held that mounting of the body over the chassis did not
amount to manufacturing activity but it facilitated the chassis for the
purpose of usable item and thus, no different commercial item, had
emerged. Therefore, the impugned order of the Tribunal did not require
any interference. [Paras 4 and 5]
In the result, the instant revision filed by the department was to be
dismissed. [Para 6]
CASE REFERRED TO
Jain Industries & Trading Corpn. v. Commissioner of Sales Tax 1989 ATJ 17 (All.)
(para 4).
Sanjieva Shankdhar for the Revisionist. H.N. Mishra for the Opposite
Party.
ORDER
1. Heard Sri Sanjieva Shankdhar, learned counsel for the revisionist and
Sri H.N. Mishra, learned counsel for the opposite party.
This revision has been filed by the department under section 11 of the U.P.
Sales Tax Act, 1948 against the judgment/order dated 1-2-1990 passed by
U.P. Sales Tax Tribunal, Lucknow for the assessment year 1981-82.
2. The brief facts of the case are that the assessee carries on the business
of the purchasing and selling of the Scooter, its parts etc. It has purchased
the chassis of the scooters against Form 3A and later put the body
fabricated over it and sold as tempo to the customers. The assessee has not
sold the chassis but sold the tempo. The Assessing Officer opined that the
tempo is a different commodity and is liable to purchase tax under section
3AAAA of the U.P. Sales Tax. So, he levied the tax. The first appellate
authority vide its order dated 16-8-2008 has remanded the matter back to
the Assessing Officer.
3. Being aggrieved, the assessee has filed an appeal before the Tribunal
who vide its impugned order dated 1-2-1990 observed that the fabricated
body over the chassis constitutes no new item. The fabrication of body
over chassis does not amount to manufacture. In fabricating the body
GOODS & SERVICES TAX CASES ❑ JANUARY 20 - FEBRUARY 4, 2010 ◆ 117