Cast iron castings fall within declared "cast iron"; same-form resale is protected, but new manufactured goods remain taxable.

Cast iron castings, including man-hole covers and fan parts, were construed as falling within "cast iron" under section 14(iv)(i) of the Central Sales Tax Act, 1956. The Tribunal applied the declared goods scheme under sections 14 and 15, noting that separate commercial commodities are distinct taxable goods, while goods retaining the same commercial identity should not be taxed again merely because of prior tax incidence. It also treated the 28 February 1977 circular as contemporanea expositio supporting that "cast iron" includes "cast iron castings". On that basis, resale in the same form was protected from further tax, but manufacture of different commercial commodities from such cast iron castings remained taxable.

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Issues: Whether cast iron castings, including man-hole covers and fan parts, fall within the expression "cast iron" in section 14(iv)(i) of the Central Sales Tax Act, 1956, and the resulting tax treatment of resale and manufacture from such goods under the Bengal Finance (Sales Tax) Act, 1941.

Analysis: The expression "cast iron" in section 14(iv)(i) of the Central Sales Tax Act, 1956 was construed in the light of the statutory scheme of declared goods under sections 14 and 15 of that Act. The Tribunal relied on the principle that separate commercial commodities constitute separate taxable goods, while goods retained in the same commercial identity are not to be taxed again merely because they have previously suffered tax in another form. Due weight was also given to the clarificatory circular of 28 February 1977, treated as an instance of contemporanea expositio, which stated that "cast iron" includes "cast iron castings". Applying that construction, goods purchased and resold in the same form remained protected from double taxation, whereas goods manufactured into different commercial commodities from cast iron castings were liable to tax.

Conclusion: Cast iron castings are included within "cast iron" under section 14(iv)(i) of the Central Sales Tax Act, 1956. Resale of such goods in the same form is not liable to be taxed again, but manufacture of different commercial commodities from such goods is taxable. The applicant did not obtain the substantive relief sought, though the legal characterization of the goods was accepted in part.

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