STATE OF KERALA Vs. MATHEW PADINJATH

JUDGEMENT

(1.) The revision petitioner/assessee is a trader in gold ornaments and bullion. The assessee filed return for the month of January 2015 showing purchase of gold ornaments and sale of bullion. The assessee's contention was that the old gold jewellery purchased in auction from various places had been refined and bullion obtained, which was sold to other dealers. The Assessing Officer found that as per the details of the Registration Certificate, the assessee is not a manufacturer nor does he maintain a refining unit.

(2.) The assessee is said to have transported the old jewellery purchased, to the refining units by delivery chalans for the purpose of refining. The bullion obtained on such refining having been sold to the very same refining unit, the Assessing Officer found sale of jewellery and not bullion; the former of which is assessable at the higher rate of 5% while the later at 1%.

(3.) The First Appellate Authority remanded the matter finding that the assumptions made by the Assessing Officer were not established with proper evidence. The Tribunal concurred with the First Appellate Authority. The State is in appeal and the learned Senior Government Pleader submits that when the transport was not supported by delivery notes the transfer of gold ornaments from the assessee to the refining units is deemed to be a sale. It is also submitted that the delivery chalans indicated the very same quantity having been received back even after refining. There is no ground for remand and the assessee is liable to pay tax at the higher rate, is the argument.