UNION CARBIDE INDIA LTD Vs. COMMISSIONER SALES TAX

JUDGEMENT

(1.) In this revision which relates to the assessment year 1972-73, the assessee challenges the levy of sales tax at the rate of 3.5 per cent on the sale of zinc sheets. The Judge (Revisions) held that the assessee sells zinc sheets to printing presses where they are used for making blocks for printing. He held that this turnover was taxable at the rate of 3.5 per cent as an unclassified item. The learned counsel questions this finding. According to him zinc sheets are taxable at the rate of 1 per cent under entry No. 2 of Notification No. ST-II-333/X--1012-1971 dated 15th November, 1971. This entry reads as follows :

(2.) (a) Copper, tin, nickel or zinc, or any other alloy containing any of these metals only. (b) Scrap meant for melting and sheets including circles meant for making brasswares and containing only any or all of the aforesaid metals, viz., copper, tin, nickel or zinc. 2. Under entry No. 2(a) copper, zinc or any alloy containing any of these metals is taxable at 1 per cent. This entry obviously refers to the metal itself or any alloy containing any of these metals. The learned Judge (Revisions) appears to me to be right to hold that finished product of zinc will not be covered by this entry. Admittedly the assessee sells zinc sheets earlier purchased by it. This turnover will not be within the purview of entry No. 2(a).

(3.) The learned counsel then invited my attention to entry No. 2(b) of this notification which says "scrap meant for melting and sheets including circles meant for making brasswares". Under it the emphasis is on the use or purpose for which sheets are sold. The intention of the parties ought to be that brass-ware will be made out of the sheets. Here in the present case the zinc sheets are sold by the assessee to printing presses which use it for making blocks for printing purposes. These facts clearly show that there was never any intention on the part of the assessee that the zinc sheets sold by it will be or were likely to be used for making brassware. The fact that this entry emphasises the intention behind the sale being the making of brassware is strengthened by the amendment of this entry. Instead of the word "meant" the word "used" has been substituted subsequently. That shows that merely the intention was not enough but actual user had to be proved in order to bring the turnover within the purview of this entry. So a sale which was neither intended nor did in fact use the sheets for making brassware would be outside the purview of entry No. 2(b). Under the circumstances the transaction was rightly assessed under the category of unclassified item at 3.5 per cent.