C.N. RAMACHANDRAN NAIR,J.

The question raised in the revision filed by assessee is whether acceptance of old gold ornaments as deposit and later return of the same in new ornament form can be treated as purchase of old gold ornaments and sale of new ornaments respectively attracting liability for tax on both purchase and sale. The Tribunal held against the petitioner and hence, this revision is filed before us.

2. We have heard learned counsel appearing for the revision petitioner and the Special Government Pleader for respondent.

3. The terms of the deposit scheme are extracted in the Tribunal’s order. It is very clear, therefrom, that the item taken as deposit viz., old gold ornament is melted and converted into new gold ornaments by the petitioner and the same is sold after taking it as stock in trade. Towards consideration for the gold deposit, the petitioner is liable to pay interest of profit share, is what is stated in the agreement. However, there is nothing to indicate as to what happens in the event, the petitioner’ s business runs into loss.

4. The Special Government Pleader has relied on the decision of the Division Bench of this Court reported in M/s. Kohino