https://www.taxtmi.com/caselaws?id=200099 Oxygen gas used in the basic oxygen steel method was treated as a basic raw material for manufacturing steel, not merely as a refining agent. The court applied the accepted manufacturing test that an ingredient remains raw material if it is indispensable, non-replaceable, and essential to the emergence of the final product, even when consumed in the process. Because oxygen was introduced in the critical stage of steel production and was essential for converting pig iron into steel, the concessional tax rate was held applicable. The authorities' earlier description of oxygen as a goods item did not control its legal character in actual use. en-us Wed, 03 Aug 2016 00:00:00 +0530 Wed, 21 Mar 2018 07:12:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=200099 Oxygen gas used in the basic oxygen steel method was treated as a basic raw material for manufacturing steel, not merely as a refining agent. The court applied the accepted manufacturing test that an ingredient remains raw material if it is indispensable, non-replaceable, and essential to the emergence of the final product, even when consumed in the process. Because oxygen was introduced in the critical stage of steel production and was essential for converting pig iron into steel, the concessional tax rate was held applicable. The authorities' earlier description of oxygen as a goods item did not control its legal character in actual use. Case-Laws VAT and Sales Tax Wed, 03 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=200099