Scrap sales not forms part of total turnover: HC

CIT Vs Tweezerman (India) Pvt. Ltd. (Madras High Court) The short question involved in the instant case is as how to compute the total turnover while considering the claim for exemption under Section 10B of the Act. The assessee is engaged in the manufacture of certain articles which are being exported and during the manufacturing process, scrap is generated which was sold and the sale proceeds would go to reduce the amount spent on the purchase of raw materials. The Tribunal held that scrap sales could not form part of total turnover. The case of the revenue is that the sale of scrap should a...