9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1985 (1) TMI 283 - HC - VAT and Sales Tax
Issues:
Interpretation of the term "declared goods" under the M.P. General Sales Tax Act, 1958 for bailing hoops and iron plates. Analysis: The judgment by the Madhya Pradesh High Court dealt with two references under section 44(1) of the M.P. General Sales Tax Act, 1958 regarding the classification of bailing hoops and iron plates as declared goods. The main question of law was whether bailing hoops, sold in the same form as produced by the rolling mill, qualified as declared goods under the Act and were liable to be taxed at specific rates. The assessment periods for the two cases were specified as 1969-1970 and 1965-1966 respectively. The applicant, engaged in the business of bailing hoops and bardanas, contended that the bailing hoops should be assessed as declared goods, while the tax authority had assessed them under the residuary schedule. The appeals made by the applicant were not entirely successful at the lower levels, leading to second appeals before the Tribunal, which rejected the contention that bailing hoops were declared goods. Consequently, the reference reached the High Court for resolution. The counsel for the assessee relied on a Full Bench decision that established iron hoops as declared goods, arguing that the iron plates, which were essentially steel strips, did not undergo substantial transformation through the process of joining and painting. The court, bound by the Full Bench decision, agreed with the assessee's argument and held that bailing hoops were indeed iron plates sold in the same form as produced by the rolling mill, thus falling under the definition of declared goods as per the Act. Therefore, the court answered the reference in favor of the assessee, concluding that bailing hoops were covered by entry 5 of Part I of Schedule II of the M.P. General Sales Tax Act, 1958, and were subject to specific tax rates as per the relevant provisions, upholding the classification of bailing hoops as declared goods in the given circumstances.
|
