Declared goods in works contracts retain tax protection when iron and steel are used in construction.

Iron and steel used in civil works contracts retain their character as declared goods even when cut, bent, tied or embedded in concrete during execution, and the State's tax power remains subject to the Central Sales Tax ceiling applicable to declared goods. On that settled principle, the materials continue to attract only the statutory limitation on tax and do not lose concessional treatment merely because they are used in construction. The Karnataka HC therefore found no surviving independent question of law for revision and did not entertain the Revenue's challenge on merits, leaving the assessee's position undisturbed.

---

---

Issues: Whether iron and steel used in execution of civil works contracts continued to be declared goods taxable only at the concessional rate of 4%, and whether any question of law arose warranting interference in revision.

Analysis: The dispute was covered by the Supreme Court's ruling that iron and steel used in construction do not lose their character as declared goods merely because they are cut, bent, tied, or embedded in concrete during execution of works contracts. Such goods continue to attract the statutory limitation on tax under the Central Sales Tax regime, and the State cannot levy tax beyond the ceiling prescribed for declared goods. In view of that settled position, the revision presented no surviving question of law for independent consideration.

Conclusion: The issue was decided in favour of the assessee, and the Revenue's revision was not entertained on merits.

Final Conclusion: The judgment affirms that iron and steel used in construction retain their declared-goods character and are taxable only within the statutory limitations applicable to such goods, resulting in dismissal of the Revenue's revision.

Ratio Decidendi: Goods specified as declared goods do not lose that character merely by being used in works contracts, and the tax payable on them remains subject to the ceiling imposed by the Central Sales Tax law.

---