9911796707
TMI Blog2007 (7) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Circular dated 31.08.1998 issued by the Commissioner, Trade Tax, U.P., Lucknow. The petitioners have alleged that petitioner no.1 is a registered society, being an association of small scale industries engaged in various products including iron wires and petitioners 2 to 5 are dealers registered under the Central Sales Tax Act and engaged in the activity of drawing 'iron wires' from 'wire rods' within the State of U.P. The petitioners have further alleged that iron and steel have been defined under Section 14(iv) of the Central Sales Tax Act, 1956. The petitioners have further alleged that no tax under the Central Act was being collected or paid by petitioners 2 to 5 or other members of petitioner no.1 who are all engaged in the activity of drawing 'iron wires' from 'wire rods'. Learned counsel for the petitioners submits that Hon'ble the Supreme Court in the case of Telangana Steel Industries v. State of Andhra Pradesh reported in (1994) 93 STC 187(S.C.) has held that the intention of legislature is to treat 'iron wires' and 'wire rods' together as a single commercial commodity for the purposes of the Central Act and no separation of the two is permissible. He further su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the submissions of the learned Addl. Chief Standing Counsel, Sri Bharatji Agarwal submits that in view of the law declared by Hon'ble the Supreme Court in TVL K.A.K. Anwar and Company v. State of Tamil Nadu(Supra), it cannot be said that the law declared by Hon'ble the Supreme Court in Telangana Steel Industries v. State of Andhra Pradesh (Supra) is per incurium. He has relied upon the decision of Hon'ble Supreme Court in Union of India and others v. Dhanwanti Devi others reported in (1996) 6 S.C.C. 44 and on the strength of the decision of Hon'ble the Supreme Court, learned counsel for the petitioners submits that the decision in Telangana Steel Industries v. State of Andhra Pradesh (Supra) is not per incurium and the Circular issued by the Commissioner, Trade Tax, U.P. is arbitrary and illegal and in violation of the law declared by Hon'ble the Supreme Court. We have considered the submissions made by the learned counsel for the parties and gone through the record. The petitioner no.1 is an association of the Small Scale Industries who are engaged in various products including iron wires and petitioners 2 to 5 are dealers registered under the Central Sales Tax Act and U.P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - rolled, drawn galvanised, aluminised, tinned or coated such as by copper. Section 15(a) of the Central Sales Tax Act provides that the tax payable under that law in respect of any sale or purchase of such goods inside the State shall not exceed four per cent of the sale or purchase price thereof, and such tax shall not be levied at more than one stage. The question whether iron wires drawn from wire rods both forming part of sub-clause (xv) of clause (iv) to Section 14 of the Central Sales Tax Act are liable to tax under the Central Sales Tax Act and the State Act was considered by Hon'ble the Supreme Court in the case of Telangana Steel Industries v. State of Andhra Pradesh (Supra) and it was held that where wire rods purchased and suffered sales tax, the sales tax could not again be realised on the sale of iron wires drawn from wire rods. Paragraphs 15 and 18 of the report in Telangana Steel Industries v. State of Andhra Pradesh (Supra) reads as under : "15. Despite the aforesaid being the position, Shri Chari contends that wires being known as a different commercial commodity from rods, as were flour, maida and suji accepted as different from wheat in Rajasthan case (1993 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was whether by drawing wire into a thinner gauge manufacture has taken place and whether the wire of the thinner gauge is excisable to duty when the assessee purchased duty-paid wire rods and drew the wire into a thinner gauge. Hon'ble the Supreme Court held that initial product was a wire rod and the ultimate product is also a wire. All that is done is that the gauge of the rod is made thinner and the product is finished a little better. In our view the earlier decisions of the Tribunal are correct. There is no manufacture of a new product. Merely because there are two separate entries does not mean that the product becomes excisable. The product becomes excisable only if there is manufacture. Learned counsel for the petitioner has relied upon the decision of the Madhya Pradesh High Court in the case of Commissioner of Sales Tax v. Vora Wires (Supra) decided on 18.11.1998. A perusal of the said judgment reveals that identical question was considered by the Indore Bench of the Madhya Pradesh High Court in M.C.C. No.218 of 1994 Vora Wires v. Commissioner of Sales Tax, M.P. reported in (1997) 106 STC 286 wherein it was held that the process of drawing wires from steel wire rods is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rods. The fact that the assessments were made during the pendency of the SLP/Appeals in the Supreme Court pursuant to the liberty given by the Supreme Court, is yet another pointer that the dispute was not confined to any particular assessment year. In such a situation to ignore the law laid down by the Supreme Court in Telangana Industries case (1994) 93 STC 187 (which has not been specifically overruled by the Supreme Court), amounts to negation of the Constitutional mandate under article 141. Therefore, this ground of revision cannot be sustained." We are of the view that as wire rods and wires having been mentioned in one sub-item, they shall be treated as one goods and not different goods. The contention of the learned counsel for the respondent that the judgment in Telangana Steel Industries v. State of Andhra Pradesh (Supra) is per incurium cannot be accepted. Paragraph 14 of the judgment in the case of TVL K.A.K. Anwar and Company v. State of Tamil Nadu(Supra) reads as under : " 14. In Telangana Steel Industries and Other v. State of A.P. And others, 1994 U.P.T.C. 847(S.C.) : 1994 Supp (2) S.C.C. 259, the question was whether iron wires were separate commercial goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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