INDIAN STEEL ROLLING MILLS Vs. STATE OF MADRAS

JUDGEMENT

(1.) DURING the assessment year 1962-63, the petitioners in this case had sold iron and steel to Messrs. Singareni Collieries Ltd., Andhra Pradesh, to the extent of Rs. 5, 41, 888.67 and to Messrs. Tranvancore Titanium Products Ltd., Trivandrum, to the extent of Rs. 19, 134.72. The petitioners also sold to the Regional Housing Engineer, Hyderabad Housing Board, goods to an extent of Rs. 91, 029.17.

(2.) AS regards the sales made to the first two companies, who were registered dealers, the petitioners claimed to be taxed at the lower rate of 1 per cent instead of the normal rate of 2 per cent applicable to declared goods. They produced C forms from the said purchasing dealers. But the C form declarations had specified the purpose of purchase as manufacture or mining. Those C forms were held by the authorities to be defective in the sense that the goods have not been purchased for resale and only in cases of resale, the concessional rate of tax will be available in the case of declared goods during the assessment year in question. Admittedly, the goods purchased were for the purpose of manufacture or for mining and not for resale. Therefore, the C form declarations which showed a purpose different from the purpose of resale cannot be availed of by the petitioners for the purpose of getting the benefit of the concessional rate of tax. This is the view taken by the assessing authority, the Appellate ASsistant Commissioner as well as the Tribunal.