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2015 (11) TMI 1494
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....stances of the case and on a true and correct interpretation of sub-entry (xv) of entry 6 of Schedule B appended to the Bombay Sales Tax Act, 1959, was the Tribunal justified in law in holding that 'welding electrodes' continue to be 'wire rods' or 'wires' even after they were coated with lime, sand and binding glue ?" This court received the statement of case, drawn separately along with documents. The petitioner herein, M/s. Berar Metal Processing Industries Pvt. Ltd., had already filed Writ Petition No. 1157 of 1998 before this court and was pending for hearing. 2. We have taken up both the reference as well as writ petition for hearing together. 3. Counsel for both the parties were heard at length. We ha....
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.... corrugated in all qualities, in straight lengths and in coil forms as rolled and in revetted condition'. The pattern of entries in different sub-entries and also the wording of sub-entry (xv) which is relevant in this case, without doubt, shows that the derivatives described later in the entry referred to the main items stated in the beginning from sub-entry (xv) it is clear that both 'wire rods' and 'wires' obtained in any of the following condition 'rolled' 'drawn' galvanised, aluminised, 'tinned' or 'coated' such as by 'copper' even if galvanised or tinned will fall within the same clause as 'wire rod'. Similarly, the 'wires' whether galvanised or tinned will re....
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....h as by copper' the use of the words 'such as' clearly indicate that 'coper coated' is stated by way of an example. Similarly, absence of expression indicating that coating is limited to coating by non-ferrous metal cannot be ignored. Had the Legislature intended to restrict the meaning of the word 'coated' used in the clause or the scope of coating contemplated by this clause, the wording in the clause would have been different. Considering the expressions occurring in this subentry (xv), it is not possible for us to give restricted meaning to the word 'coated'. We are, therefore, not inclined to agree with Mr. Bodhade, that 'coating' stated in the clause means coating of non-ferrous metal only. ....
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....ure of coating appears to be true. This aspect is not at all disputed. According to the appellant the coating is, however, made in order to facilitate electro welding process for which the coated wires are used. It is unnecessary for us to reiterate that endues of the product is of no consequence for deciding the nature of the item for the purpose of taxation. In the present case whether the coated wire or wire rod is used as electrode in welding process or not, the item is only a coated iron wire. Its character as iron wire or wire rod is not altered. Even otherwise, in the present case bare wire without coating or a coated wire both can be used for welding. 17. Mr. Bodhade cited the decision of the Supreme Court in the case of St....
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....ions 14 and 15 of the Central Act are exhaustively discussed and with respect, we are in agreement with the same Mr. Dawda also argued and rightly so that it is two interpretations of the expression 'coated such as by copper' occurring in sub-entry (xv) of entry No. 6 of Schedule B are possible and if it is doubtful whether the iron rod coated with lime and sand is covered by the same or not then interpretation in favour of the assessee should be preferred. In this respect also, reliance has been placed on the decision of the Bombay High Court in the case of New Nagpur Copra Industries. We are in agreement with the submission of Mr. Dawda. In fact, we have no doubt that this item 'welding electrode' sold by the appellant is ....