TaxTMI 
TaxTMI 
1998 (6) TMI 558
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....hedule under entry No. 28 from April 1, 1992 to September 4, 1996 and if it is not by electric current then the item of the petitioner may fall under entry 55 of the Fifth Schedule where the transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract and other than those specified in the Sixth Schedule have been exempted. It is submitted that the nature of service rendered by the petitioner does not fall under entry 28 of the Sixth Schedule to the Karnataka Sales Tax Act, 1957 but falls under entry 55 of the Fifth Schedule of the Act therefore the petitioner is entitled for exemption. 2.. Whether the work of galvanising is a works contract or not, reliance is placed on the decision o....
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.... of the above definition, it would be evident that even "processing contracts" are considered as works contract. 3.. Galvanising has been defined in "Encyclopedia Britannica" as under: "Galvanising, protection of iron or steel against exposure to the atmosphere and consequent rusting by application of a zinc coating. Properly applied, galvanising may protect from atmospheric corrosion for 15 to 30 years or more. As discontinuities or porosity develop in the coating, galvanic or electrolytic action ensues; the iron or steel, however is protected by sacrificial corrosion, a phenomenon in which, as long as the zinc and the iron are in contact, atmospheric oxidation spares the iron and affects the zinc. Zinc may be applied by two gener....
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.... hot-dip processing for galvanising. The process of galvanising by hot-dip method will fall within the definition of "works contract". 5.. In order to examine the contention of the learned counsel for the petitioner as to whether hot-dip galvanising without use of electric current falls under entry 28 of the Sixth Schedule or under entry 55 of the Fifth Schedule, the legislative intent is necessary to be examined. 6.. The process which have been contemplated by definition of "works contract" are those works contracts where there some transfer of property in the course of execution of the works contract. Article 366 of the Constitution of India was amended by a new entry (29A) extending the scope of "tax on the sale or purchase of good....
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....try 28 of the Sixth Schedule so as to exclude it from the exemption granted by entry 55 of the Fifth Schedule. 8.. In order to see the history of legislation in this regard, entry 28 from April 1, 1990 provided 5 per cent tax on electroplating and anodizing only. This entry was amended with effect from April 1, 1992 by Act No. 4 of 1992 and the entry was "electroplating, electrogalvanising, anodising and the like". The contention of the learned counsel for the petitioner is that hot-dip zinc coating in a manner other than the electric aid is not covered because the words "and the like " should be interpreted in the sense the other items of the entry exists. In this regard reliance is placed on the decision in Nagar Mahapalika, Bareilly v....
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....pplication. It is only a rule of construction to be applied as an aid in ascertaining the correct meaning of words when there is uncertainty or ambiguity. It may be resorted to not to obscure and defeat the intent and purpose of the Legislature but to elucidate its words and effectuate its intent. In order to apply this rule it must clearly appear that the Legislature was thinking of a particular class of persons or objects. 10.. It is not in dispute that so far as hot-dip process is concerned it does not fall under electroplating or electrogalvanising or anodising. The question remains as to whether it could be considered to fall in the category of "and the like". The word "like" have been defined in Stroud's Judicial Dictionary as "....
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....ing of zinc; (b) Electrogalvanised zinc is pure, more concentric and uniform and is more versatile in use; (c) No ash or zinc dross is formed; (d) Heavier coatings (up to 1-2kg/m(2)) is possible only with electro-galvanising; (e) Plant can be shut down quickly and restarted quickly; and (f) Electrogalvanised steel wires are better for further drawing and stranding. However, hot-dip galvanising requires less space and gives lustrous zinc coatings, while corrosion protection for both types is similar. In order to rationalise the requirements of different types of galvanised wires, coatings have been grouped into three types, that is, heavy, light and medium. For general guidance, annexure-A indicating applicability of variou....