TMI Blog1982 (3) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... ns fell within item 4(d)(iv) of the Second Schedule to the Act was not accepted by the Commercial Tax Officer. The appeal filed by the assessee before the Appellate Assistant Commissioner was also dismissed. The further appeal preferred by the assessee before the Sales Tax Appellate Tribunal, Madras, also failed. Accordingly, the assessee has filed this tax revision case. Mr. Varadarajan, the learned counsel for the assessee, submits that cold rolled steel strips fall within item 4(d)(iv) of the Second Schedule to the Act. Item 4(d)(iv) reads as follows: "4. Iron and steel, 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; and (d) (i) steel plates; (ii) steel sheets; (iii) sheet bars and tin bars; (iv) rolled steel sections; and (v) tool alloy steel. Item (i) to (v) sold in the same form in which they are directly produced by the rolling mill. " It may be observed that this item was amended in 1973. We are concerned in this case with the item as it stood prior to its amendment in 1973. Mr. Varadarajan, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aight jacket formula can be deviced or even contemplated which would take in all cases covered by the entry and yet not leave out some. Human ingenuity is so great and so numerous are the ways in which having regard to scientific and technological process articles like rolled steel sections can be made use of that we think it would be unwise to formulate, even if we could, an inclusive or exclusive test defining the content of the entry in so far as it relates to rolled steel sections sold in the same form in which they are directly produced by the rolling mills." In Commissioner of Sales Tax v. Ashwini and Co. [1973] 32 STC 618, a Bench of the Allahabad High Court had to consider the question whether iron hoops were covered by the term "iron and steel" mentioned under section 14(iv)(d)(iv) of the Central Sales Tax Act. It may be mentioned that section 14(iv)(d)(iv) of the Central Sales Tax Act referred to rolled steel sections. The learned judges held that all that was necessary to bring the article within the meaning of section 14(iv)(d)(iv) of the Central Sales Tax Act was to establish that the article was rolled steel section. The learned judges however did not answer the que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the category of rolled steel sections to only such articles as can be used for structural constructions. There is nothing in the language of section 14(iv)(d)(iv) of the Central Sales Tax Act which warrants such a conclusion. In fact, there is no mention in the section of the purpose for which the various items mentioned therein are to be put. As we read section 14(iv)(d)(iv), all that is necessary is that the article in question should be rolled steel section and once that is established, the use for which it may be put is wholly immaterial." The learned Additional Government Pleader emphasised upon the fact that even if it is accepted that the rolled steel strips dealt with by the assessee fall within the meaning of rolled steel sections in item 4(d)(iv) of the Second Schedule to the Act, it is also necessary that they should be sold by the assessee in the same form in which they are directly produced by the rolling mills. Mr. Varadarajan, the learned counsel for the assessee, stated that the rolled steel strips are being obtained by the assessee from the Tube Products of India in the same form in which they are produced by the rolling mills and sold as such. There is no materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Commercial Taxes, Board of Revenue, Madras, has in his communication dated 16th August, 1962, ruled that cold rolled steel strips will come within item 4(d)(iv) of the Second Schedule to the Act and therefore the respondent cannot now go back on the ruling given by them with regard to the cold rolled steel strips sold by the assessee. The learned counsel further argued that on the face of the ruling given by the Commissioner of Commercial Taxes the assessee had not collected sales tax on the cold rolled steel strips marketed by them and consequently the respondent must be barred under the principle of promissory estoppel from asserting that cold rolled steel strips do not fall within item 4(d)(iv) of the Second Schedule to the Act. In this context, the learned counsel referred to the decision in Motilat Padampat Sugar Mills Co. Ltd. v. State of U.P. [1979] 44 STC 42 (SC). On the contrary, the learned Additional Government Pleader stated that the Government is not bound by the circulars issued by the departmental authorities and in this context relied upon the decision in Subbier v. State of Madras [1973] 31 STC 205. In the view we have taken on the merits that cold rolle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard by the assessee, agreed with the conclusion of the assessing authority and held that the assessee was not entitled to the exemption it claimed. It is against these orders that the present revision case has been preferred. For the purpose of considering the claim put forward by the assessee, it is necessary to set out section 14(iv) of the Central Sales Tax Act, 1956, before its amendment by the Central Act 61 of 1972. It is the same entry which has been reproduced by the Tamil Nadu General Sales Tax Act also, and therefore, there is no need to reproduce the same provision in the said Act separately. The said section 14(iv) is as follows: "14. Certain goods to be of special importance in inter-State trade or commerce.It is hereby declared that the following goods are of special importance in interState trade or commerce:............ (iv) iron and steel, 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 they (iii) sheet bars and tin bar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the legislature intended to adopt the most general concept of iron and steel and wanted all forms of iron and steel to be brought within that entry." The next decision to which our attention was drawn by the learned counsel is that of the Kerala High Court in State of Kerala v. C. Moidoo [1972] 29 STC 373 at 374, 376. That also dealt with an entry relating to the Central Sales Tax Act which was as follows: "Oil-seeds, that is to say, seeds yielding non-volatile oils used for human consumption, or in industry, or in the manufacture of varnishes, soaps and the like, or in lubrication, and volatile oils used chiefly in medicines, perfumes, cosmetics and the like." Dealing with the scope of the expression "that is to say" occurring in the above entry, the Bench of the Kerala High Court stated: "The Federal Court had to consider the power to legislate 'with respect to intoxicating liquors' and incidentally the words 'that is to say, the production, manufacture, possession, transport, purchase and sale of intoxicating liquors, opium and other narcotic drugs' in Schedule 7, List 2, item 31, of the Government of India Act, 1935, particularly the words 'that is to say' came up for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that had proceeded on the basis that section 14(vi) of the Central Sales Tax Act, 1956, contains a definition of 'oil-seeds' have erred. " In view of the subsequent decision of the Supreme Court in State of Tamil Nadu v. Pyare Lal Malhotra [1976] 37 STC 319 (SC) it must be held that the aforesaid two decisions, namely, the decision of the High Court of Andhra Pradesh and that of the High Court of Kerala are not good law. The Supreme Court in that case dealt with the same entry with which we are concerned in the present case, namely, "iron and steel, that is to say". The Supreme Court also considered the meaning of the expression "that is to say" given by the Privy Council as well as the Federal Court in the two decisions referred to by the High Court of Andhra Pradesh and the High Court of Kerala, referred to already. While doing so, the Supreme Court observed: "What we have inferred above also appears to us to be the significance and effect of the use of words 'that is to say' in accordance with their normal connotation and effect. Thus, in Stroud's Judicial Dictionary, 4th Edn., Vol. 5, at page 2753, we find: 'That is to say.-(1) "That is to say" is the commencement of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and was not intended to be merely explanatory or illustrative, but on the other hand it was intended to be restrictive and enumerative. As a matter of fact, the Supreme Court contrasted with the provisions as they were found and as we have extracted already, the provisions introduced as section 14(iv) by the Central Act 61 of 1972, and held that the said amendment merely confirmed the view they had taken of the expression "that is to say" occurring in the enactment. In view of this decision of the Supreme Court, we are clearly of the opinion that there is no force in the contention of the learned counsel for the assessee and we hold that the expression "that is to say" is exhaustive, enumerative and restrictive of the expression "iron and steel" and that only those commodities or goods which have been enumerated after the words "that is to say" will come within the scope of the declared goods and they alone will be entitled to the exemption claimed by the assessee in the present case and that no other goods will be entitled to the exemption. Admittedly steel tube is not one of the commodities enumerated in that entry, and therefore, the assessee will not be entitled to any ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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