COMMISSIONER SALES TAX Vs. HINDUSTAN METAL WORKS

JUDGEMENT

(1.) The Judge (Revisions), Sales Tax, U.P., has at the instance of the Commissioner of Sales Tax, U.P., referred to this Court a statement of the case from which the following question of la arises:- Whether the sale of phosphor bronze ingots made from an alloy of tin and copper with a total addition of not more than 1 per cent. of phosphorus and lead would be taxable?

(2.) The assessee sold an article called phosphor bronze ingots to the Indian Railways in accordance with a contract entered into between it and the railways. Under the contract it was to supply to the railways an article, the composition of which was:- Tin between 6 and 8 per cent., lead 5 per cent., phosphorus between 4 and 6 per cent. and copper of the balance.

(3.) Thus the article namely phosphor bronze ingots to be sold by the opposite party to the railways was to consist of at least 90.9 per cent. copper, of 6 to 8 per cent. of tin, of not more than 5 per cent. of lead and of 4 to 6 per cent. of phosphorus. In compliance with these contracts the opposite party sold to the railways ingots containing 0.1 per cent. of lead, 0.4 per cent. of phosphorus, 6 to 8 per cent, of tin and at least 90.9 per cent, of copper. The question arose before the assessing authorities whether the turnover of sale of these ingots was exempt from payment of sales tax under Notification no. ST. 3085/X-902(16)-49 dated 3rd August, 1949, which read's as follows:... the Governor is hereby pleased to order that...the provision of Section 3 of the Act shall not apply to the sales of copper, tin, nickel and zinc or any alloy containing any of these metals only.