COMMISSIONER OF SALES TAX Vs. ANAND INTERNATIONAL

JUDGEMENT

(1.) In this revision filed by the Commissioner of Sales Tax the parties are at issue as to whether "beater" is covered by the term "forging", which finds place in the list of "iron and steel" as contemplated by the provisions of Section 14 of the Central Sales Tax Act and as such the said material is exempt from tax. The contention of the department is that "beater" is an item of hardware.

(2.) I have heard learned counsel for the parties. From a perusal of the impugned order dated 24th January, 1987 passed by the Sales Tax Tribunal it is clear that the Tribunal has elaborately gone through the process of manufacture of "beater". It has also gone through the controversy as to whether manufacturing of "beater" amounts to forging or not. In Encyclopedia Americana, Vol. II, page 599, forging has been defined as "forging is the shaping of metal by compressing between a hammer or ram and an anvil. In the most primitive form of the process the metal is held in a large block, or anvil, and beaten into the desired shape with a hammer". Again according to "World Book Encyclopedia" (F/7), the word "forging" has been explained as under: Forging is a method of shaping metal by heating it, then hammering or pressing it into a desired form. Almost any metal or combination of metals can be forged. Some of the forgeable materials are iron, steel, nickel, titanium, aluminium and bronze. When metal is forged, its internal make-up changes. It looses its grainy structure and becomes more fibrelike. This fibrelike structure gives the forged articles more strength. Forgings are particularly useful for objects that take heavy wear, such as turbine blades for jet-aircraft engines, propeller shafts for ships and locomotive parts.

(3.) On the facts of this case it is important to note that the first appellate authority before deciding the appeal called for a report of the Assistant Commissioner (A)-V, Sales Tax, Ghaziabad and as a consequence thereof the Assistant Commissioner (A) had surveyed the premises of the appellant on 26th August, 1986 and submitted his survey report. On a perusal of the said survey report it was found that manufacturing of "beater" is nothing but a forging process of manufacture of "beater". It has been brought on record in the said survey report that the said Assistant Commissioner (A) had actually seen the actual process of manufacture of "beater". It has also been mentioned in the said report that the "hole" (eye) in beater is made with the help of forging process by heating iron flat from which the beater is made. It has been further mentioned in the said report that the flat is heated and it goes through 6 forging processes in red hot stage for making the hole. The Tribunal has categorically recorded a finding of fact that in manufacture of beater the assessee does not make "hole" by use of any drill, lathe or grinder but the same is done by only forging process, i.e., heating the metal and forging with dies fitted, in forging process. It was on the basis of the said material that the Tribunal has recorded a finding of fact that in the manufacture of "beater" it is only forging process which is used. The Tribunal has further relied upon certain other reports and materials, such as a certificate of Sri V.C. Goyal, Architect and Valuers (Regd)., New Delhi, a certificate of the Assistant Mechanical Engineer, Indian Railway Communication, New Delhi and a bio-data of the forging industry as also a certificate from S. B. Engineers & Consultants, Ghaziabad, certifying that "beater" is a technical term and it is nothing but a forging.