COMMISSIONER OF SALES TAX Vs. OM ENGINEERING WORKS

JUDGEMENT

(1.) These six revisions have been filed by the Commissioner of Sales Tax against the judgment dated 31st August, 1984, passed by the Sales Tax Tribunal, Meerut Bench, Meerut, relating to assessment years 1975-76, 1976-77 and 1977-78 both under the U. P. and Central Sales Tax Acts.

(2.) The assessee deals in pipe and pipe fittings. For the years 1975-76 and 1976-77 the original assessment orders were passed on 26th September, 1978 and for the year 1977-78 it was passed on 29th September, 1978 under Rule 41(7) of the Sales Tax Rules. The goods which were being dealt with by the assessee were held as "iron and steel" under Section 14(iv)(xi) of the Central Sales Tax Act (hereinafter referred to as the Central Act) and were taxed accordingly.Thereafter the assessments were reopened under Section 21 of the U. P. Sales Tax Act (hereinafter referred to as the Act) on the ground that the goods in which the applicant was dealing were not covered by the entry "iron and steel" under Section 14(iv)(xi) of the Central Act but were unclassified items and were liable to be taxed at the rate of 7 per cent under the Act and at 10 per cent under the Central Act. The contention of the assessee in proceedings under Section 21 of the Act that the pipe and pipe fittings were "iron and steel" was not accepted by the assessing authority and fresh assessment orders were passed. The first appeals filed by the respondent assessee before the Assistant Commissioner (Judicial) were allowed. The Revenue being aggrieved against the aforesaid order of the Assistant Commissioner (Judicial) preferred second appeals before the Tribunal which by the impugned order dismissed the appeals.

(3.) I have heard Sri P. K. Jain, learned counsel appearing for the department and Sri Bharatji Agarwal, learned counsel appearing for the assessee. Learned standing counsel has urged that the pipe and pipe fittings are not covered under the entry "iron and steel" and was not classified commodity under Section 14(iv)(xi) of the Central Act and should have been taxed as unclassified commodity and the Tribunal's order is wholly illegal and erroneous. Learned standing counsel also contended that galvanised pipe fittings were liable to be taxed at the rate of 7 per cent as they are not covered under Section 14(iv)(xi) of the Central Act. On the contrary Mr. Bharatji Agarwal has invited my attention to circular No. 24/3/73 S.T. (P.T.) dated November 20, 1973 issued by the Government of India, Ministry of Finance, on the scope of the definition of the term "iron and steel" as given in Section 14(iv) of the Central Act as amended by the Central Sales Tax (Amendment) Act, 1972 relevant part where ofreads: