CHHAGANLAL H MITTAL Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) BY this reference under Section 44 (1) of the M. P. General Sales Tax Act, 1958 (hereinafter referred to as "the Act"), the Board of Revenue has referred the follo ing question of law to this Court for its opinion :

(2.) THE material facts giving rise to this reference, briefly, are as follows : The assessee is engaged in the manufacture of G. I. barbed ire. The assessee as assessed to tax under the Act for the period from 8th November, 1980 to 27th October, 1981. The turnover of the assessee on account of G. I. barbed ire as determined at Rs. 50,602. The sales made to the Government Departments amounted to Rs. 42,977 and the balance as assessed to tax at 10 per cent under entry 1 of Part VI of Schedule II to the Act. The contention of the assessee as that G. I. barbed ires ere covered by item No. (xv) of Clause (iv) of Section 14 of the Central Sales Tax Act, 1956 and hence, being declared goods, the rate of tax could not exceed 4 per cent, by virtue of Section 15 of the Central Sales Tax Act. This contention as rejected by the assessing authority. The appeal preferred by the assessee as dismissed. On further appeal, the Board of Revenue held that hen G. I. ire as converted into G. I. barbed ire, the process of manufacture as involved and a different commercial commodity came into existence, hich as not covered by any item of the declared goods under Section 14 of the Central Sales Tax Act. In this vie of the matter, the Board dismissed the appeal. Aggrieved by the order passed by the Board of Revenue, the assessee sought reference and it is at the instance of the assessee that the aforesaid question of law has been referred to this Court for its opinion.

(3.) SHRI Chaphekar, learned counsel for the assessee, contended that G. I. barbed ire as covered by the entry "iron and steel" specified in Clause (iv) of Section 14 of the Central Sales Tax Act and thus fell under the category of declared goods, hich could not be subjected to tax exceeding 4 per cent, by virtue of Section 15 of the Central Sales Tax Act. In reply, it as contended by Shri S. R. Joshi, learned Deputy Advocate-General, that G. I. barbed ire being a different commercial commodity, hich as not covered by any item specified as "declared goods" in Section 14 of the Central Sales Tax Act, the provisions of Section 15 of the Central Sales Tax Act ere not attracted.