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Issues: (i) Whether galvanised iron wire sold in coils was 'hardware'; (ii) whether, if not hardware, it was iron and steel covered by section 3-AA of the U.P. Sales Tax Act.
Issue (i): Whether galvanised iron wire sold in coils was 'hardware'.
Analysis: A wire is not a 'ware' or an article ordinarily understood as hardware. The commodity was sold in the same condition in which it was purchased, and hardware denotes small articles such as nuts and bolts. On that basis, galvanised iron wire in coils could not be treated as hardware.
Conclusion: Galvanised iron wire in coils was not hardware.
Issue (ii): Whether, if not hardware, it was iron and steel covered by section 3-AA of the U.P. Sales Tax Act.
Analysis: Iron and steel may assume different shapes, including wires, and galvanisation does not alter their essential character. Coiling the wire for transport also does not change its nature. Section 3-AA applies to iron and steel sold to the consumer, and the assessee, having furnished form III-A certificates, was not treated as a consumer.
Conclusion: The commodity remained iron and steel within section 3-AA, and the assessee was not liable to tax on the turnover in question.
Final Conclusion: The reference was answered in favour of the assessee, and the turnover of galvanised iron wire in coils was held not taxable as hardware but covered by the iron and steel exemption framework.
Ratio Decidendi: Galvanisation or coiling of iron wire does not alter its essential character as iron and steel, and a commodity sold in its purchased form cannot be classified as hardware merely because it is in wire form.
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