TaxTMI 
TaxTMI 
TaxTMI 
2011 (1) TMI 1050
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.... the circumstances of the case and on a true interpretation of the scope of the term "Iron and Steel" within the meaning of section 14(iv)(vii) of the Central Sales Tax Act, 1956, the Appellate Tribunal was right in holding that the goods "Cable Tray" is not covered by the term "Iron & Steel" 2. Whether on the facts and in the circumstances of the case, the dealer was liable to pay interest under Section 27(1) of the Delhi Sales Tax Act, 1975." 3. The petitioner was assessed for the assessment year 1987-88. On 30th March, 1992 an additional payment of Rs.8,05,831/- was created. The items which were sold by the petitioner to the purchasing dealer were not allowed as per registration certificate of purchaser without payment of tax. Reassessment was done and tax return of Rs.14,12,314/- @ 7% along with interest was assessed whereby an additional demand was raised from Rs.8,05,831/- to Rs.13,53,486/-. The appeal against the reassessment order was dismissed by the Additional Commissioner Sales Tax (hereinafter, referred to as "ACST"). The petitioner/assessee filed an appeal before Appellate Tribunal Sales Tax (hereinafter referred to as "Tribunal") which was also dismissed vide the im....
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....fore we take up this question and advert to the authorities relied upon by the learned counsel for the parties, it would be appropriate to refer to the relevant provisions of the Act. Section 2(c) of the Act, defines "declared goods" as under:- "(c) "declared goods" means goods declared under Section 14 to be of special importance in inter-State trade or commerce;" Section 14. "Certain goods to be of special importance in inter-State trade or commerce- It is hereby declared that the following goods are of special importance in inter-State trade or commerce" iv) iron and steel, that is to say, - (vii) Plates both plain and chequered in all qualities;" 9. Clause (c) of Section (2) uses the expression "means" and is undisputedly exhaustive. It means that only those goods which are specified under Section 14 of the Act are to be treated as "declared goods". The words "iron and steel" used in sub-section (iv) of section 14 are qualified with the words "that is to say". According to the learned counsel for Department, sub-section (iv) would apply to only those items of iron and steel which are specified in Clauses (i) to (xiv) thereunder. The use of words "that is to say" makes the ....
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.... cover not only a handkerchief woven as a fabric in its own size but also a handkerchief made out of a bigger dimension of fabric. Whether the handkerchief is manufactured by the textile process as such, or is a cut piece of a larger fabric, it would qualify for exemption under item 4 in the Third Schedule." 14. The case of Pio Food Packers (supra), relied upon by learned counsel for the petitioner is also distinguishable. This case related to pineapple fruits which were processed into pineapple slices. It was held that though, it has undergone a degree of processing, it must be regarded as still retaining its original identity. The principles laid down by the Hon'ble Supreme Court in this case are of wide importance. The Court held as under:- "The generally prevalent test is whether the articles produced is regarded in the trade, by those who deal in it, as distinct in identity from the commodity involved in its manufacture. Commonly, manufacture is the end result of one or more processes through which the original commodity is made to pass. The nature and extent of processing may vary from one case to another, and indeed there may be several stages of processing and perha....
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....ase of K.A.C. Trading Corporation (supra) which related to sizing or subdividing iron and steel plates was also on entirely different facts. 17. On the other hand, the authorities relied upon by the learned counsel for the Department as noted in para (6) are relevant to the facts and questions of the present case. 18. In the case of Jai Shakti Traders (supra), relied upon by learned counsel for the Department it was held as under:- "Shoe tips, heels, tip toes and tip nails made of iron or steel are not declared goods as they are not comprised by the item "plates, both plain and chequered in all qualities" specified in section 14(iv)(vii) of the Central Sales Tax Act, 1956." 19. In the case of Bengal Iron Corporation and Anr. (supra) it was held by the Hon'ble Supreme Court as under: "cast iron‟ was different from "cast iron casting‟ like manhole covers, bends, cast iron pipes etc. manufactured and sold by the appellant from cast iron purchased by him." The Court also held that: "clarification/circulars issued by the Central Government and/or State Governments represent merely their understanding of statutory provisions. They are not binding upon the Courts." 20. I....
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....s of each case and application of relevant provisions of section 14 of the Act. 25. Applying the aforesaid tests to the present case, we cannot say that the cable trays - perforated as well as ladder types continued to remain the iron and steel plates only. As understood both these types of plates are manufactured out of mild steel sheets of 2 mm thickness. These sheets are cut into strips in required sizes. The perforated types cable trays are cut into strips, punched and slotted before bending it into channel shaped trays. Finally, the trays are galvanized by the hot-dip process. In case of ladder type cable trays, sheets strips are first bent and then welded together in required dimensions and finally galvanized. These are used in power projects for laying down of heavy cables instead of cement trenches or pipes. The type of processes involved brings an ultimate product which is distinct and different. The cable trays of different types and shapes come of the manufacturing process. There cannot be any doubt that the plates have undergone transformation into cable trays and the process involved was manufacturing. These are sold in the market to meet different mechanical and engi....
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....aler initially paid turnover tax, but for the period of beginning January 1, 1982, it filed its returns without furnishing any details of the gross turnover and stated that it had refrained from paying turnover tax upon legal advise that the provisions in question were invalid. Writ petitions were filed in the High Court challenging the provisions of section 6B of the 1941 Act and section 4AAA of the 1954 Act. By an interim order dated March 4, 1983 the court granted an injunction permitting the dealer to furnish a bank guarantee for 50 per cent of the disputed turnover tax and directing the dealer to go on furnishing bank guarantees equivalent to 50 per cent of the turnover tax liability in subsequent years till further orders. For the periods in question, the dealer went on furnishing bank guarantees for 50 per cent of the turnover tax. On February 24, 1988 the writ petitions were dismissed by a Division Bench of the High Court. The turnover tax which remained unpaid was paid by July, 1989. The sales tax authorities held the dealer liable to interest on the turnover tax for the periods in question in terms of section 10A of the 1941 Act. On a petition to the Taxation Tribunal, i....