9911796707
TMI Blog1961 (3) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... ings quashed in regard to the realization of purchase tax from the petitioners and prohibition against them from proceeding against the petitioners to recover the alleged amount of purchase tax. In substance the case of the petitioners is that they carry on the business of rolling steel into rolled steel sections. They purchase steel and roll it into rolled steel sections. They claim that the process of rolling steel into rolled steel sections is not a process of manufacture and that this process amounts to no more than making the steel to be a more marketable commodity as such. According to them the nature and character of the commodity does not undergo any alteration. The assessing authority has called upon them to pay purchase tax un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s clause there are four heads, of which head (a) relates to pig iron and iron scrap, head (c) to steel scrap, steel ingots, steel billets, steel bars and rods, and head (d) (iv) to rolled steel sections sold in the same form in which they are directly produced by the rolling mills. It is clear that rolled steel sections are treated as a separate commodity as against the raw material dealt with in heads (a) and (c) of this clause. At the hearing what was stated was that the petitioners purchased iron scrap or steel scrap and then rolled the same into rolled steel sections. In the petitions it is not made so clear. It is obvious that when the raw material of iron or steel that the petitioners purchase and rolling the same turn into rolled ste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both sales and purchase tax are leviable under the Act more than two per cent, of such tax is collected at more than one stage. It has not been shown that in regard to the sale and purchase of one commodity in one transaction both sales tax and purchase tax are leviable nor has it been shown that for the same commodity in the same state, without it going into another shape and coming out as a new commodity, either sale or purchase or both taxes are levied at more than one stage. What has been urged at the hearing is that in the case of sale by a seller of steel to a consumer what is attracted is sales tax but when he sells the same to a manufacturer for its use in manufacture what is attracted is purchase tax, but then where sales tax is at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it to a manufacturer, it is the purchase tax that is attracted, and that after the petitioners as manufacturers have rolled steel into rolled steel sections and they sell it to consumers what is attracted is sales tax. In all the three cases two per cent. of the price is charged, which altogether makes sometimes four per cent. and sometimes six per cent. of the price. This is not quite the correct way of looking at the matter and part of it has already been explained. When steel is rolled into rolled steel sections the outcome is a different and a new commodity and when it is sold it is a sale of a different commodity and not a sale of steel over again. Therefore when sales tax is attracted on the sale of rolled steel sections it is not at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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