USHA MARTIN INDUSTRIES LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) THIS writ petition arises from a proceeding under section 15 (b) of the Central Sales Tax Act, 1956. After the amendment allowed in the writ petition, it challenges an order dated November 23, 1990 passed by the Joint Commissioner, Commercial Taxes (Administration), Ranchi Division, Ranchi, whereby he rejected the petitioners' claim under section 15 (b) of the Central Sales Tax Act, 1956 for the reimbursement of a sum of Rs. 13,87,395. 96 paid by way of sales tax under the State law on steel wire/wire rod for the period from 1976-77 to November, 1979.

(2.) THE petitioner No. 1 is an industrial unit engaged in the manufacture and sale of iron and steel wires which are manufactured from wire rods/iron rods. The wire rods/iron rods were purchased by the petitioner-unit in Bihar on payment of sales tax as provided under the State law. The wires manufactured out of the wire rods which had suffered tax under the State law were sold by the petitioner in the course of inter-State trade and on those transactions Central sales tax was paid as provided under the Central Sales Tax Act, 1956. Accordingly the petitioner made a claim, in terms of section 15 (b) of the Central Sales Tax Act, for reimbursement of the amount paid by it as sales tax under the State Act on the wire rods which had gone in the manufacture of the wires, sold by it in the course of inter-State trade and on which Central sales tax had been duly paid.

(3.) IT was contended on behalf of the petitioner that wire rods and wires being included together in sub-clause (xv) of clause (iv) of section 14 of the Central Sales Tax Act, 1956, they would be deemed to be one and the same taxable item and hence on payment of Central sales tax on the sale of wires, the petitioner was entitled to the reimbursement of the sales tax paid on wire rods under the State Act.