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TMI Blog1963 (10) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... 4(d)(iv) in Schedule AA to the Act and since they were not claimed to fall within any other specific entry the residuary entry 80 in Schedule B to the Act applied for determining the rate of tax. The applicants being aggrieved by the decision of the Deputy Commissioner of Sales Tax preferred an appeal to the Tribunal. A contention was sought to be raised before the Tribunal on behalf of the department that rivetted baling hoops were not rolled steel sections at all nor were they any other variety of iron and steel specified in entry 4(d) of Schedule AA and that that entry had, therefore, no application to rivetted baling hoops. This contention involved the determination of a question of fact which would necessitate the leading of fresh evidence and besides, it was contrary to the assumption on which the department had proceeded until then since in a Bulletin issued in 1960 by the department, baling hoops were shown under the main classification of rolled steel sections and were stated to be covered by entry 3(d)(iv) of Part I of Schedule B to the Bombay Sales Tax Act, 1959, which corresponded to entry 4(d)(iv) in Schedule AA of the Bombay Sales Tax Act, 1953, and the Deputy Commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in line with section 14(iv) of the Central Sales Tax Act, 1956. Section 15 of the Central Sales Tax Act, 1956, provided that every sales tax law of a State shall, in so far as it imposes or authorizes the imposition of a tax on the sale or purchase of declared goods, being the goods specified in section 14, be subject to the restrictions and conditions that the tax payable under that law in respect of any sale or purchase of such goods inside the State shall not exceed two per cent. of the sale or purchase price thereof, and such tax shall not be levied at more than one stage. The original section 15 was not in this form but in this form it was substituted by Central Act 31 of 1958 with effect from 1st October, 1958. Consequent upon the enactment of section 15 in this form a further amendment was made in the Bombay Sales Tax Act, 1953, with effect from 1st October, 1958. Section 7A was introduced in the Bombay Sales Tax Act, 1953, which ran as follows: "7A. Subject to the provisions of section 7 there shall be levied sales tax or purchase tax on the turnover of sales or, as the case may be, of purchases, of goods specified in Schedule AA at such rate not exceeding two naye paise i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al progress articles like rolled steel sections can be made use of that we think it would be unwise to formulate, even if we could, an inclusive or exclusive test defining the content of the entry in so far as it relates to rolled steel sections sold in the same form in which they are directly produced by the rolling mills. We should confine our task only to the determination of the limited question before us, namely, whether on the facts and circumstances of the present case rivetted baling hoops can be said to be rolled steel sections sold in the same form in which they are directly produced by the rolling mills. We must consider these goods and ask ourselves the question: are these goods rolled steel sections in the same form in which they are directly produced by the rolling mills and if we ask this question to ourselves, it is clear that whatever difficulty there may be in defining precisely and exhaustively the true meaning of the entry, there is no difficulty in arriving at a solution of the problem before us. Rivetted baling hoops are really nothing else but pieces of rolled steel sections joined together by rivetting. The description "rivetted baling hoops" is a little co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat are sold by the dealer are not rolled steel sections in the same form in which rolled steel sections are directly produced by the rolling mills? Take another case where a rolling mill which produces rolled steel sections in certain defined lengths finds that in the process of manufacture some rolled steel sections are broken and the rolling mills, therefore, rivets them so as to make up the usual length and then sells them. Can it be said in such a case that what are sold by the rolling mills are not rolled steel sections in the same form in which rolled steel sections are directly produced by the rolling mills? These illustrations pointedly bring out the distinction between length and form in relation to rolled steel sections. The argument urged on behalf of the department suffers from the fallacy that it seeks to treat length as a part of the form of the rolled steel sections. Of course rivetting is done to the rolled steel sections, but that is done for the purpose of increasing the length of the rolled steel sections and it does not have the effect of changing their form. No process is applied which in any way changes the form of the rolled steel sections. We are, therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which we are inclined to take would carry out the object and purpose of the enactment more fully and effectually, for it will give the benefit of reduced sales tax not only to rolled steel sections which are sold in the lengths in which they come out from the rolling mills but also to rolled steel sections which are joined together by rivetting so as to form a greater length. This approach to the consideration of the question also therefore, lends support to the view that rivetted baling hoops which are nothing but pieces of rolled steel sections joined together by rivetting fall within entry 4 in Schedule AA. In this view of the matter, we are of the opinion that the decision of the Tribunal that rivetted steel baling hoops did not fall within entry 4 in Schedule AA and were therefore covered by the residuary entry 80 in Schedule B, is erroneous. Rivetted baling hoops fall within entry 4 in Schedule AA and sales tax must, therefore, be charged on the sale of rivetted baling hoops under that entry. Our answer to the question referred to us will, therefore, be in the affirmative. The respondent will pay the costs of the reference to the applicants. Reference answered in the affir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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