Clarification regarding "Steel Wire Ropes, Stainless Steel Ropes, Copper Wire Ropes and Copper Stay Wires" . - VAT - Delhi - 13

GOVERNMENT OF NCT OF DELHI DEPARTMENT OF TRADE AND TAXES, (POLICY BRANCH) VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI 110 002 No.F.3(217)/P-II/VAT/Misc./2010/798-804 Dated : 10.10.2011 CIRCULAR NO. 13 OF 2011-12 In a case titled M/s Bansal Wire Industries Ltd. and Anr. Vs State of UP and Ors., Hon ble Supreme Court of India vide its judgment dated 26.04.2011 held that Stainless Steel Wire does not fall under the category of tools, alloy and special steels in entry No. (ix) and, therefore, does not fall under Iron and Steel as defined under section 14(iv) of the Central Sales Tax Act . Also, in the case of M/s Sharma Wire Industries, Commissioner, Value Added Tax, vide Order No. 41/CDVAT/2005 dated 20.10.2005 has determined that Steel Wire Ropes, Stainless Steel Ropes, Copper Wire Ropes and Copper Stay Wires are all taxable @ 12.5% as unscheduled goods u/s 4(1)(e) of the DVAT Act, 2004. In the above context, it is hereby clarified that while determining taxability of such goods, the ratios of above referred judgment of Hon ble Supreme Court of India and above quoted determination order shall be applicable. This issues with the approval of the Commissioner, VAT. (G. C. Lohani) VATO (Policy)