TCS not Applicable on cotton waste used as raw material by purchaser

The Tribunal has specifically found that in the process of manufacture of cotton yarn, cotton waste came to be generated and the use of the said waste by another manufacturer shows that it was used as raw material by purchaser. Even the learned Departmental representative stated before the Tribunal that the cotton waste disposed of by the respondent-assessee, was re-used as raw material for manufacture of lower count of cotton yarn and it does not come under definition of scrap as defined in Explanation (b) of Section 206C of the Act. As the said

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