Galvanised steel tubes remain steel tubes when galvanisation is only a weather-proofing process, affecting tax treatment.

Galvanisation was treated as a surface process that made steel tubes weather-proof and did not create a new commercial commodity. On that reasoning, galvanised steel tubes remained steel tubes and were not taxable as a distinct commodity under the Kerala General Sales Tax Act, 1963. The assessment was also viewed as inconsistent with the controlling Supreme Court principle on the character of galvanised tubes, and the assessment orders were set aside with a direction for fresh assessment in accordance with law.

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Issues: Whether galvanised steel tubes remained steel tubes and were therefore not exigible to tax under the Kerala General Sales Tax Act, 1963.

Analysis: The assessment of galvanised tubes was challenged on the footing that they were declared goods under sections 14 and 15 of the Central Sales Tax Act, 1956, attracting the statutory ceiling on tax. The governing principle applied was that galvanisation is only a process to make the tube weather-proof and does not bring into existence a new commercial commodity. The earlier assessment orders were thus inconsistent with the controlling Supreme Court decision on the character of galvanised tubes.

Conclusion: The galvanised tubes were held not exigible to tax as a distinct commodity under the Kerala General Sales Tax Act, 1963, and the assessment orders were set aside with a direction for fresh assessment in accordance with law.

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