1974 (9) TMI 105 - HC - VAT and Sales Tax

Summary

Issues involved: Interpretation of section 3-AA of the U.P. Sales Tax Act regarding taxation of plain and corrugated iron sheets.

Summary:
The High Court of Allahabad, in the case at hand, considered whether plain and corrugated iron sheets are taxable at 3 per cent as hardware or fall under section 3-AA of the U.P. Sales Tax Act. The court analyzed the process of galvanization and corrugation, noting that these processes do not change the essential character of iron and steel. Referring to a previous decision in State of Andhra Pradesh v. Sri Durga Hardware Stores, it was established that galvanization and corrugation enhance the utility of raw iron material without altering its fundamental nature. As the same mill both manufactures and processes the sheets, the court concluded that the turnover of the sheets in question falls within the category of iron or steel as defined under section 3-AA. The court ruled in favor of the assessee, awarding costs amounting to Rs. 100.

In conclusion, the turnover of plain and corrugated iron sheets was determined to be classified under the category of iron or steel as per section 3-AA of the U.P. Sales Tax Act.