Products of Copper Exemption Applies to electrical cables with copper as the dominant and essential component.

Electrical wires, PVC power electrical cables and other electrical cables with 85% copper content were treated as products of copper because copper was their dominant and essential component. On that basis, the Rajasthan HC held that the exemption notification dated 6 March 1991 applied where copper purchased by a registered dealer was used as raw material in manufacturing another product of copper within Rajasthan, subject to the prescribed conditions. As no illegality or perversity was shown in the Tax Board's factual findings, the assessee was entitled to the concessional rate and the demand for additional tax and interest could not be sustained.

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Issues: Whether electrical wires, PVC power electrical cables and electrical cables having 85% copper content were "products of copper" for the purpose of the exemption notification dated 6 March 1991 issued under section 4(2) of the Rajasthan Sales Tax Act, 1954, and whether the assessee was therefore entitled to the concessional rate of tax.

Analysis: The notification exempted purchase tax beyond 1.5% where copper purchased by a registered dealer was used as raw material in the manufacture of any other product of copper within Rajasthan, subject to the prescribed conditions. On the facts found by the appellate authority and the Tax Board, the electrical wires, PVC power electrical cables and electrical cables manufactured by the assessee contained 85% copper, making copper their dominant and essential component. Goods whose dominant and essential component was copper were treated as products of copper, and the condition in the notification stood satisfied. No illegality or perversity in the Tax Board's view was shown.

Conclusion: The assessee was entitled to the benefit of the notification dated 6 March 1991, and the demand of additional tax and interest could not be sustained.

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