Single-point taxation of declared goods prevents a further levy on steel wire ropes made from previously taxed iron wire rods.

Steel wire ropes drawn from iron wire rods that had already borne sales tax are not a distinct taxable commodity for a further levy. The applicable single-point taxation regime for declared goods, together with the established treatment of iron wires and ropes, precludes taxing the ropes again at 12%. The article states that the assessment and appellate orders did not apply this governing legal position, making the additional levy unsustainable.

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Issues: Whether steel wire ropes drawn from iron wire rods, on which sales tax had already been suffered, could be separately subjected to tax at 12%.

Analysis: Steel wire ropes drawn from taxed iron wire rods are not a separate taxable commodity. The applicable single-point taxation regime for declared goods and the settled principle governing iron wires and ropes precluded a further levy. The assessment and appellate orders failed to apply this governing legal position.

Conclusion: The levy of tax at 12% on steel wire ropes was unsustainable and could not be maintained.

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