1988 (2) TMI 439

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....ey also run rolling mills for manufacturing mild steel rods and flats, etc., and thereafter sell them in the market. For their manufacturing purposes, they purchase raw materials from Rourkela Steel Plant and other sources in shape of ingots, moulds and scraps on furnishing declaration in form No. XXXIV for the purpose of resale in the State of Orissa which entitles them to a lesser rate of sales tax. This sale of manufactured products was included in the petitioners' taxable turnover. But the assessing officer took a view that the utilisation of the raw materials for manufacturing rods, plates, etc., and selling the finished products thereafter amounted to violation of the declaration made in the prescribed form and thus the dealers had co....

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....i) steel semis (ingots, slabs, blooms and billets of all qualities, shapes and sizes) (vi) sheets,hoops, strips and skelp, both black and galvanised, hot and cold rolled, plain and corrugated in all qualities in straight lengths and in coil form, as rolled and in rivetted condition;   ------------------------------------------------------------------------- 1 2 3 4 ------------------------------------------------------------------------- (xi) steel tubes, both welded and seamless of all diameters and lengths, including tube fittings; On the basis of the above entry, i.e., entry No. 46, it was vehemently submitted that the description of "iron and steel" was not exhaustive and only descriptive in nature and, therefore,....

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.... of Punjab [1967] 20 STC 430 where an observation was made that after the manufacture, the goods purchased had become a different marketable commodity, and it was accordingly submitted that the view that the goods (scrap, etc.) did not change their identity (after manufacture) was not correct. This argument was noticed by the court in great detail in paragraph 6 of the judgment and was rejected for good reasons, namely, that the question in that case was as to whether for the purposes of the purchase tax and sales tax obviously at different points, the change of the commodity could be treated separately. I find myself in full *Since reported in [1988] 69 STC 187. agreement with those observations, however, with further addition that even if....