Essential character test for corrugated iron sheets keeps them within the iron and steel entry, not the residuary category.

Corrugated iron sheets retained the essential character of iron and steel despite corrugation, which merely altered shape to improve rigidity for roofing and walling. The controlling test was whether processing or change in form transformed the goods into a different commercial article; as it did not, the sheets remained within the specific taxing entry and were not relegated to the residuary entry. Where two views on a taxing entry are reasonably possible, the construction favouring the assessee may be adopted. The goods were therefore treated as covered by the iron and steel entry.

---

---

Issues: Whether corrugated iron sheets sold by the assessee were covered by entry 15 of Schedule B to the Bombay Sales Tax Act, 1953, as iron and steel, or by the residuary entry 80.

Analysis: Corrugated iron sheets were held to be iron sheets whose shape had been altered by corrugation to increase rigidity and suitability for roofing and walling. The controlling test applied was whether the commodity retained its essential character despite processing or change in form. Mere alteration of shape, without conversion into a different article or loss of the essential character of iron, was insufficient to take the goods outside entry 15. The reasoning was supported by prior authorities on forms of commodities and by the principle that, where two views are possible in a taxing entry, the view favouring the assessee may be adopted.

Conclusion: Corrugated iron sheets were held to fall within entry 15 of Schedule B as iron and steel and not within the residuary entry 80.

Final Conclusion: The reference was answered in favour of the assessee, with the sales of corrugated iron sheets treated as covered by the specific iron and steel entry.

Ratio Decidendi: A commodity does not cease to fall within a taxing entry merely because it undergoes alteration of shape or processing, so long as it retains its essential character and is not transformed into a distinct commercial product.

---