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TMI Blog1980 (7) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. As for rate of tax the Sales Tax Officer treated perforated sheets as mill stores or hardware while the Assistant Commissioner (Judicial) treated them to be an unclassified item and liable to tax as such. The assessee contended before the Additional Judge (Revisions) that perforated sheets sold by him fell in the category of "iron and steel" as defined in clause (iv) of section 14 of the Central Sales Tax Act and after the amendment in the section by amending Act 61 of 1972, which came into effect from 1st April, 1973, sheets both plain and corrugated are covered by the expression "iron and steel". It was explained that the assessee purchases iron sheets and after perforating them against orders sells the same and thus perforated sheets ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... teel, that is to say,- (a) pig iron and iron scrap; (b) iron plates sold in the same form in which they are directly produced by the rolling mill; (c) steel scrap, steel ingots, steel billets, steel bars and rods; (d) (i) steel plates, } (ii) steel sheets, } sold in the same form in which (iii) sheet bars and tin bars, } they are directly produced by (iv) rolled steel sections, } the rolling mill." (v) tool alloy steel } By the Central Sales Tax (Amendment) Act (61 of 1972), clause (iv) was redrafted and in so far as it is relevant for the present purpose, it now reads: "(iv) Iron and steel, that it to say,- (vi) sheets, hoops, strips and skelp, both black and galvanised, hot and cold rolled, plain and corrugated, in all qualitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... giving the exemption justified that interpretation. The exemption was given to sale by either an importer or a purchaser of "goods prepared from any metal other than gold or silver". Thus, the question there was whether exemption was given to the substance out of which goods were made. In that context it had become necessary to examine whether the exemption from sales tax was meant for all goods made out of a particular substance, or for goods as separate commercial commodities and it was held that the raw material from which the goods were made was decisive for the purposes of exemption given. Now the view taken in P.L. Malhotra's case[1976] 37 S.T.C. 319 (S.C.); 1976 U.P.T.C. 282 (S.C.). is that the object of single point taxation is a co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial out of which other goods are made and others are definitely varieties of manufactured goods. By means of this subsequent amendment, therefore, the intention of the legislature is made clear and it is to enumerate separately the taxable goods and not just to illustrate what is just one taxable substance "iron and steel". In my opinion, after perforation, the iron sheet emerges as a different commercial commodity. A perforated iron sheet cannot be used for purposes in which a plain iron sheet can be used. In other words, the use of an iron sheet and perforated iron sheet is not interchangeable. It may also be noted that a perforated iron sheet cannot be restored to its original shape and thus it has to be held that after perforation a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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