Concessional tax entry limited to specified use; jurisdictional challenge to tax levy may be raised for first time in revision.

Zinc sheets sold to printing presses were held outside the concessional entry for copper, zinc or alloys under the relevant notification because the provision covered only goods intended or used for the specified brassware purpose; they were therefore taxable as an unclassified item at the higher rate. A jurisdictional objection that scrap turnover was not taxable at all, and that additional tax could not be levied by the assessing officer, could be raised for the first time in revision because it went to the very power to levy tax. The matter on scrap turnover and additional tax was required to be reconsidered on merits.

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Issues: (i) Whether zinc sheets sold to printing presses were covered by entry No. 2 of Notification No. ST-II-333/X-1012-1971 dated 15th November, 1971, so as to attract tax at 1 per cent instead of being assessed as an unclassified item at 3.5 per cent. (ii) Whether the assessee could raise, for the first time in revision, the plea that turnover of scrap was not taxable in the relevant assessment year and that additional tax could not be levied by the Sales Tax Officer.

Issue (i): Whether zinc sheets sold to printing presses were covered by entry No. 2 of Notification No. ST-II-333/X-1012-1971 dated 15th November, 1971, so as to attract tax at 1 per cent instead of being assessed as an unclassified item at 3.5 per cent.

Analysis: Entry No. 2(a) applied to copper, zinc, or alloys containing such metals, but not to a finished product of zinc sheets sold after purchase. Entry No. 2(b) dealt with sheets meant for making brassware, and the wording showed that the intended or actual use for brassware was material. Zinc sheets sold to printing presses for making blocks for printing were neither intended nor used for making brassware. The subsequent substitution of the word "used" for "meant" reinforced that the provision required such use to attract the concessional rate.

Conclusion: The zinc sheets did not fall within entry No. 2(a) or entry No. 2(b) and were rightly assessed as an unclassified item at 3.5 per cent, against the assessee.

Issue (ii): Whether the assessee could raise, for the first time in revision, the plea that turnover of scrap was not taxable in the relevant assessment year and that additional tax could not be levied by the Sales Tax Officer.

Analysis: A plea that the commodity was not taxable at all, and that additional tax could not be imposed, went to the jurisdiction of the assessing authority and therefore could be raised at the revisional stage. The earlier view treating the omission to raise the point at the appellate stage as fatal was not applicable where the challenge was to the very power to levy tax. The revisional authority was therefore required to examine those pleas on merits.

Conclusion: The assessee was entitled to raise these jurisdictional pleas in revision, and the matter had to be reconsidered on those issues.

Final Conclusion: The assessment was sustained on the classification of zinc sheets, but the controversy concerning scrap turnover and additional tax was sent back for fresh consideration, resulting in partial relief to the assessee.

Ratio Decidendi: A jurisdictional objection to the very levy of tax can be raised for the first time in revision, and concessional rate entries limited to specified intended or actual use do not extend to goods sold for a different purpose.

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