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Commissioner Of Sales Tax vs Tata Iron And Steel Company Ltd.

High Court Of Judicature at Allahabad|20 September, 1974

JUDGMENT / ORDER

JUDGMENT Satish Chandra, J.
1. The question of law which requires consideration in this case is whether plain and corrugated sheets made of iron come under Section 3-AA of the U.P. Sales Tax Act or is taxable at 3 per cent as hardware. Clause (iv) of Section 3-AA(l) refers to iron and steel and it goes on to categorise the different varieties thereof by using the phrase "that is to say". Sub-clause (d) refers to the form in which they are directly produced by the rolling mill. In the present case it seems to have been found that the mill which manufactures the plain and corrugated sheets in question also galvanises them before selling them out.
2.In State of Andhra Pradesh v. Sri Durga Hardware Stores [1973] 32 S.T.C. 322. it was held that galvanisation is nothing but coating the iron sheet with zinc by an electrical process or some other processes, to prevent it from oxidation. The galvanisation improves the utility of the raw material of iron. Corrugation is merely wrinkling of the sheets in one direction for the purpose of making the sheets more rigid and for giving increased stiffness so as to be more suitable for roofing and walling. Both corrugation and galvanisation improve the utility of the raw material. By the process of galvanisation and corrugation, the iron and steel do not lose their essential character as iron and steel. In view of this decision it must be held that galvanisation and corrugation process does not change the essential character of the iron and steel. They remain iron and steel. In view of the rinding that galvanising and corrugating are done by the same mill which manufactures them, the case clearly falls within Sub-clause (d) of Clause (iv) of Section 3-AA(l).
3. Learned counsel has not pressed that the turnover of these sheets was "wares made of metal" within the meaning of the notification dated 21st May, 1963.
4. Our answer to the question referred to us is that the turnover of the sheets in question fell within the category of iron or steel as defined under Section 3-AA. The assessee is entitled to costs, which are assessed at Rs. 100.
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Title

Commissioner Of Sales Tax vs Tata Iron And Steel Company Ltd.

Court

High Court Of Judicature at Allahabad

JudgmentDate
20 September, 1974
Judges
  • S Chandra
  • K Seth