2011 (3) TMI 416

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....Section 68(2) of the Punjab Value Added Tax Act, 2005 (for short, "the Act") against the order dated 16-5-2010, Annexure P-3, of the Punjab VAT Tribunal claiming following substantial questions of law :- (a)     Whether piston rings manufactured from iron by using carbon, silicon, chemicals and other material with specific quality, precision and dimension, for specific type of engines, of specific dia and for specific purposes would fall under sub-clause (viii) of clause (iv) of Section 14 of the Central Sales Tax Act, 1956 i.e. "iron and steel" and would be declared goods under this provision of law? (b)     Whether piston rings manufactured from iron by using carbon, silicon, chemicals and oth....

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....pellant, 90 to 92% iron is used and the other material used are chemical etc. just 8 to 10%. Even if this item is used as automobiles parts by the automobiles industry or as automobiles components, still the fact remains that the item piston rings manufactured by the appellant shall be the item made out of iron and steel and shall be covered in entry (viii) of section 14(iv) of the Central Sales Tax Act, 1956 especially when the word rings is there in that entry. From the above discussion, it is held that item piston rings is a declared goods chargeable to tax @ 4%. The appeal filed by the appellant as such is accepted and orders of the authorities below treating this item as automobiles component and charging tax @ 12.5% is set aside." ....

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....bsp;       xx            xx            xx (iv) iron and steel, that is to say.- xx            xx            xx            xx            xx (viii) discs, rings, forgings and steel castings;" Schedule F is of residue items not specified elsewhere taxable @ 12.5%. 8. It is well settled that normal test to be applied for classifying a fiscal entry is a common parlance tes....