1989 (4) TMI 305

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..... barbed wires were commercial commodity other than G.I. wires and were not covered by item No. (xv) of clause (iv) of section 14 of the Central Sales Tax Act, 1956?" 2.. The material facts giving rise to this reference, briefly, are as follows: The assessee is engaged in the manufacture of G.I. barbed wire. The assessee was assessed to tax under the Act for the period from 8th November, 1980 to 27th October, 1981. The turnover of the assessee on account of G.I. barbed wire was determined at Rs. 50,502. The sales made to the Government Departments amounted to Rs. 42,977 and the balance was assessed to tax at 10 per cent under entry 1 of Part VI of Schedule II to the Act. The contention of the assessee was that G.I. barbed wires were cove .....

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..... s Tax Act, the provisions of section 15 of the Central Sales Tax Act were not attracted. 4.. The short question for consideration is whether "G.I. barbed wire" is covered by any of the entries in section 14 of the Central Sales Tax Act. The relevant entry is entry No. (iv) in section 14 of the Central Sales Tax Act. That entry came up for consideration before the Supreme Court in State of Tamil Nadu v. Pyare Lal Malhotra [1976] 37 STC 319 and the Supreme Court held that the object of specification in section 14 of the Central Sales Tax Act was to enumerate only those categories of items, each of which was to serve as a new starting point for a series of sales, which were to be classed as declared goods. We may usefully refer to the follow .....

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..... d, drawn, galvanised, aluminised, tinned or coated such as by copper". Conversion of G.I. wire into G.I. barbed wire involves a process of twisting and fixing sharp edges upwards and downwards to act as an obstacle to trespassers. A new commercial commodity distinct from "G.I. wires" comes into existence and in our opinion, therefore, the Tribunal was justified in holding that G.I. barbed wires were not covered by item No. (xv) of clause (iv) of section 14 of the Central Sales Tax Act. 5.. Our answer to the question referred to this Court is, therefore, in the affirmative and against the assessee. In the circumstances of the case, parties shall bear their own costs of this reference. Reference answered in the affirmative.
Case laws, D .....

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