1971 (11) TMI 148

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....ct, and as such liable to be taxed at 2 per cent. up to 30th June, 1966, and 3 per cent. thereafter?" The assessee, M/s Hirji Nainsee and Co., Ujjain, uses iron baling hoops as packing materials for preparing cotton bales. Section 15 of the Central Sales Tax Act, 1956, provides that the sales tax law of a State shall not levy on the declared goods a tax at a rate higher than 2 per cent. which rate was subsequently altered to 3 per cent. Section 8(2) of the said Act provides that the tax payable by any dealer on his turnover on the sales of goods in the course of inter-State trade or commerce shall be calculated at the rate applicable to the sale or purchase of such goods inside the appropriate State if the sales are with respect to the decl....

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.... the iron hoops were treated by the sales tax department to be falling within clause (iv) of section 14. There was some doubt as to how many articles fell within that list. The Government of India, therefore, circulated a letter in which certain items were mentioned as coming within clause (iv) of section 14. As "iron hoops" were not included in that list, the sales tax department started recovering sales tax at higher rate prescribed under section 8(2)(b). When the matter was taken to the Board of Revenue, it appears that the counsel for the sales tax department admitted that when the iron hoops were treated as declared goods, the amount of tax would not exceed the limit prescribed under section 15 of the Central Sales Tax Act and that the....

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....n be usefully considered is sub-clause (d). The first two items, namely, "steel plates" and "steel sheets" do not apply to iron hoops. Similarly, the entry regarding "steel bars and tin bars" is inapplicable. The only entry that can be considered is entry (iv) below sub-clause (d), viz., "rolled steel sections". The word "rolled" indicates that in the manufacture of the articles the iron or steel is moved to and fro in order to give that particular article the desired shape. The decision would, therefore, depend on the interpretation of the word "sections". In Concise Oxford Dictionary the word "section" is defined to mean, among other things, "part cut off from something, one part of a structure such as boat or wooden house that is made in....