JUDGMENT Rajes Kumar, J.
1. These four revisions under Section 11 of U.P. Sales Tax Act (hereinafter referred to as "Act") are directed against the order of Tribunal dated 31 07.1953 relating to the assessment years 1988-89 and 89-90 both under the U.P. Trade Tax Act and under the Central Sales Tax Act.
2. In all the four revisions the dispute relates to the tax on silicon manganese and ferro manganese. In the original assessment proceedings under Section 7 of the Act both the aforesaid items have been taxed @ 2% treating both the item as alloy. Proceedings under Section 21 of the Act were initiated on the ground that the lower rate of tax were applied while silicon manganese and ferro manganese were liable to tax @ 4.4% as mineral under the U.P. Sales Tax Act and @ 10% under the Central Sales Tax Act. The dispute therefore, is whether the silicon manganese and ferro manganese are liable to tax as alloy or as minerals. Tribunal treated both the items as alloy and accordingly, set aside the orders passed under Section 21 of the Act.
3. Heard learned Counsel for the parties.
4. Learned Standing Counsel submitted that silicon manganese and ferro manganese are mineral and liable to tax accordingly.
5. Learned Counsel for the dealer/opposite parrs (hereinafter referred to as "Dealer") submitted that silicon manganese and ferro manganese are not mineral but is a mixture of various metals and therefore, is alloy. Relevant entry of the notification No. ST-11-6075/X-6(9)-83-U.P. Act 15/48-Order-83, dated 01.10.1983 reads as follows:
In exercise of the powers under the proviso to Clause (e) of Sub-section (1) of Section 3-A of the U.P. Sales Tax Act, 1948 (U.P. Act No. XV of 1948), read with Section 21 of the U.P. General Clauses Act, 1904 (U.P. Act No. 1 of 1904), the Governor is pleased to make, with effect from October 1, 1983, the following amendments in government Notification No. ST-11-5785/X-10(1)-80-U.P. Act 15-48-Order-81, dated September 7, 1981:
AMENDMENT In the list given below the aforesaid notification for the entries in columns 2, 3 and 4 against serial No. 3, the following entries shall be substituted;
6. In the book of Indian Standard Specification, silico manganese and ferro manganese have been defined as follows:
Silicon Manganese -A master alloy of iron, manganese and silicon with a minimum manganese content is the range of 50-75 percent by mass and silicon content in the range of 10-35 percent by mass, obtained by reduction.
Ferro Manganese -A master alloy of iron, manganese and silicon manganese with minimum content of 65% by mass and maximum contents of 95% by mass obtained by reduction from the corresponding raw material.
7. Materials and Technology Longman J.H. Vo.-ll "Metals and On" commented on "Terro alloy" at Pages 337 and 338 as follows:
High carbon ferro-mangaese, containing about 80% Mn 13% Fe and 5% is made in a blast furnace or electric are furnace. The blast furnace method is very similar to that used for pig iron (q.v.) but the fuel requirements are much greater. High-grade manganese ore and coke form the charge for the blast furnance. If cheap electric power is available, the electric are furnace is a suitable method for producing ferr-alloys. The two methods yield alloys of very similar compositions.
Another form of ferro-alloy known as 'spiegaleseen' iron with about 20% Mn, 5% C and 1% Si, is also made in the blast furnace but its production is tending to drop in favour of high-carbon ferromanganese. Low-carbon ferromanganese, (containing less than 0.1% C), which is required in certain steel-making operations, is made in an electric are furnace in which the charge consists of manganese ores and silico-manganese, without any carbon fuels.
Silicon-manganese, which contains about 20% Mn, 22% Si, 6% Fe and less than 1% C is made by the reduction of manganese ares containing silica or with added silica.
8. The word "alloy has been defined in Legal Glossary by Government of India. Ministry of Law and Justice as below:
A substance composed of two or more metals ultimately mixed and united, usually by being fused together and dissolving in each other when moten.
9. In the case of Mineral Sales Corporation v. CST reported in 46 STC 208. This Court has considered mineral as follows Mineral is defined as a solid Homogenous crystalline chemicnl element or compound that results from inorganic process of nature and that has a crystalline structure or chemical composition or rang of compositions.
10. The distinction between alloy and mineral appears to be that alloy is substance obtained as a result of fusion of two or more metal and mineral is solid crystalline chemical element or compound. As referred above, ferro manganese and silicon manganese are substance obtained as a result of fusion or reduction of more than two metals namely, iron, silicon and manganese, they have been rightly treated as "Alloy".
11. In the result, all the four revisions fails and are dismissed.