1992 (4) TMI 219

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... penalty imposed under section 17(3) of the M.P. General Sales Tax Act, 1958 (for short "the Act"). 2.. By order dated February 28, 1991, a show cause notice was directed to be issued against the respondents calling upon them to show cause as to why the petition be not admitted. The respondents have accordingly entered appearance and filed their reply. With the consent of the parties it was taken up for final hearing. Accordingly they were heard.   3.. The petitioner, a partnership firm, running a rolling mill at Ujjain, is a registered dealer under both the State Act as well as the Central Sales Tax Act, 1956. 4.. It is the petitioner's pleaded case that the firm purchases iron scraps from registered dealer of Madhya Pradesh ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... comprehensive enough to include petitioner's product, as such no purchase tax could be levied. 6.. Shri Singh, learned Additional Advocate-General appearing for the respondents, on the other hand, submitted that the impugned orders are quite legal and proper and do not call for any interference. He argued that petitioner's contention that iron and steel sold to a registered dealer on declaration are exempted from sales tax and when no sales tax is liable to be levied, no purchase tax can be levied on purchase price of such goods (sic). He explained that when iron and steel is sold to a registered dealer on declaration in the prescribed manner, it is exempted from sales tax but exemption from levy on sales tax does not mean that iron and....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... or ballies or any other articles of wood, but does not include such manufactures or manufacturing process as may be notified." On a plain reading of this definition it would be clear that the conversion of one category of iron and steel to another is manufacture within the meaning of above definition. 9.. The Supreme Court in Devi Dass Gopal Krishnan v. State of Punjab [1967] 20 STC 430 has very clearly propounded that making iron rods and iron wires from scraps of iron, is a manufacturing process. The Supreme Court has observed: "Now coming to Civil Appeals Nos. 39 to 43 of 1965, the first additional point raised is that when iron scrap is converted into rolled steel it does not involve the process of manufacture. It is contended....