State of Haryana & ANR Vs A. P. Processors (Supreme Court of India)
In the case of State of Haryana & ANR vs. A.P. Processors, the Supreme Court of India has affirmed the ruling of the High Court. The case revolves around the measure of VAT levy on dyeing units, specifically addressing the taxation of wastage generated during the dyeing process. The High Court had previously held that no tax should be imposed on the wastage, and only the goods embedded in the final cloth would be subject to taxation due to the transfer of property in the works contract involved.
The Supreme Court’s affirmation of the High Court’s judgment brings clarity to the issue of tax levy on dyeing units. The court supports the High Court’s reasoning that only the goods embedded in the final cloth, where the property has been transferred, should be taxable. The ruling distinguishes between the wastage generated during the dyeing process and the taxable goods that undergo the works contract. This distinction ensures that only the goods in which the property has been transferred attract taxation, while the wastage remains exempt.
Read High Court Judgment: No VAT on dyes & chemicals washed away during Job work & get embedded into final product
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
There is a delay of 491 days in Diary No.46207/2019.
We have heard learned counsel for the Appellants-State and learned counsel for the respondent at length in all these cases.
These matters are filed as against the order of remand to the Assessing Officer passed by the High Court with a direction to hear the parties concerned and to pass fresh orders in the matters. In other words, the matters have been remanded to the Assessing Officer to consider the case of the assessees as well as of the Appellants herein and to pass fresh orders in terms of the directions issued by the High Court in Paragraph 27 of its detailed order dated 17.5.2018. We do not find any reason to interfere with the impugned orders.
Accordingly, the Civil Appeals and the connected matter stand dismissed.
Needless to observe that all contentions on both sides are left open before the Assessing Officer.
Consequently, all pending application(s), if any, stand dismissed.
UPON hearing the counsel the Court made the following The Civil Appeals and the connected matter stand dismissed in terms of the signed order. Pending application(s), if any, stand dismissed.
