2006 (3) TMI 707

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he purpose of taxation under the Kerala General Sales Tax Act, steel springs would fall only under entry 99/68 of the First Schedule to the KGST Act? The assessee is a dealer in various types of steel sections, channels, bottom plates and wire coil (springs) mainly used for rolling steel bars. Assessment years in question are from 1991-1992 to 1996-1997. Primary question that has come up for consideration in these cases is whether steel spring sold by the assessee would fall under entry 99 of the First Schedule for the year 1991-92 which was taxable at 6 per cent and for the year 199293 and onwards under entry 68 of the First Schedule taxable at 8 per cent. Entry 99 held the field before March 31, 1992 and from April 1, 1992 onwards the a .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s manufactured. Steel wire of specified SWG is twisted spirally by means of mechanical process at required lengths, normally varying from 9 to 25 inches and 3 ½ to 7 inches in diameter and both the ends of the spirally twisted springs are heated and forming hooked ends so as to enable to fasten with the wheel connected with the axle of the rolling shutter and due to this manufacturing process a commercially different commodity made of steel emerges. Dictionary meaning of the spring is also relevant. We may refer to the meaning given by New Websters' Dictionary of English, which is extracted below: " 'Spring' is an elastic contrivance or body as a strip wire of steel coiled spirally which when compressed, bent or oth .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... quot; the manufacturing process of which we have already mentioned earlier, is not included in the above entries. Entry 99/68 of the First Schedule specifically deals with steel articles not mentioned elsewhere. Since steel spring is not mentioned elsewhere, it would fall under entry 99/68 of the First Schedule to the Kerala General Sales Tax Act. Above is the view taken by the assessing authority as well as the Deputy Commissioner (Appeals) with which we fully agree. The Tribunal, in our view, has committed a grave mistake in not properly appreciating the scope and ambit of entries 99 and 68 of the First Schedule to the Act. In such circumstances, we are inclined to allow these tax revision cases and set aside the order of the Tribunal. W .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X