Tax classification turns on essential identity and prescribed form: cut iron rods kept the concession, but cut B.P. sheets did not.

A concessional taxing entry for iron rods continued to apply even after the rods were cut into smaller pieces, because their essential identity as rods remained unchanged; the higher rate was therefore unsustainable. By contrast, B.P. sheets cut into pieces no longer satisfied the requirement that iron plates be sold in the same form in which they were directly produced by the rolling mill, so the concessional rate was unavailable and the higher tax rate stood. The commentary states that concessional classification depends on whether the goods still answer the statutory description and, where required, retain the prescribed form after cutting or processing.

---

---

Issues: (i) Whether iron rods cut into pieces remained taxable at the concessional rate under entry 3C(c); (ii) whether B.P. sheets cut into pieces continued to qualify as iron plates sold in the same form in which they were directly produced by the rolling mill under entry 3C(b).

Issue (i): Whether iron rods cut into pieces remained taxable at the concessional rate under entry 3C(c).

Analysis: Entry 3C(c) covered iron rods. Cutting longer rods into smaller pieces did not change their essential identity as rods, and the goods continued to answer that description. The higher rate applied by treating them as other articles was therefore unsustainable.

Conclusion: The issue was decided in favour of the assessee. Iron rods cut into pieces remained taxable at the concessional rate of two per cent.

Issue (ii): Whether B.P. sheets cut into pieces continued to qualify as iron plates sold in the same form in which they were directly produced by the rolling mill under entry 3C(b).

Analysis: Entry 3C(b) required that the iron plates be sold in the same form in which they were directly produced by the rolling mill. Once the larger plates were cut into pieces to suit customers, they no longer retained that form. On a plain reading of the entry, the concessional rate was unavailable.

Conclusion: The issue was decided against the assessee. Cut B.P. sheets were rightly taxed at five per cent.

Final Conclusion: The assessment was interfered with only to the extent of iron rods, while the higher rate on cut B.P. sheets was upheld.

Ratio Decidendi: Where a taxing entry grants a concessional rate only to goods answering a specific description, goods retain the concession only if their essential description and, where required, their prescribed form remain unchanged after cutting or processing.

---