COMMISSIONER OF SALES TAX Vs. BOMBAY MACHINERY CO

JUDGEMENT

(1.) This is the Commissioner's revision under Section 11(1) of the U. P. Sales Tax Act relating to the assessment years 1971-72 and 1972-73 and the question for consideration is as to whether steel tubes are liable to tax as a declared commodity under Section 14(iv) of the Central Sales Tax Act, 1956, at the rate of 3 per cent or as mill stores liable to tax at 6 per cent. The only reason given by the revising authority for treating steel tubes as a declared commodity under Section 14(iv) of the Central Act was that in the revision for the immediately preceding year this commodity has been taxed at 3 per cent. This view is wholly erroneous and cannot be sustained.

(2.) Section 14 of the Central Act declares certain goods to be of special importance in inter-State trade or commerce. Clause (iv) of this section as applicable to the assessment year under consideration was as under :

(3.) This clause has been substituted by Section 11(b) of the Central Sales Tax (Amendment) Act, 1972, with effect from 1st April, 1973, and it now certainly includes: (xi) Steel tubes, both welded and seamless, of all diameters and lengths, including tube fittings.