9911796707
TMI Blog1992 (4) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated February 28, 1991, a show cause notice was directed to be issued against the respondents calling upon them to show cause as to why the petition be not admitted. The respondents have accordingly entered appearance and filed their reply. With the consent of the parties it was taken up for final hearing. Accordingly they were heard. 3.. The petitioner, a partnership firm, running a rolling mill at Ujjain, is a registered dealer under both the State Act as well as the Central Sales Tax Act, 1956. 4.. It is the petitioner's pleaded case that the firm purchases iron scraps from registered dealer of Madhya Pradesh and also imports goods from outside the State. Respondent No. 2 by his orders dated October 30, 1985, December 31, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned Additional Advocate-General appearing for the respondents, on the other hand, submitted that the impugned orders are quite legal and proper and do not call for any interference. He argued that petitioner's contention that iron and steel sold to a registered dealer on declaration are exempted from sales tax and when no sales tax is liable to be levied, no purchase tax can be levied on purchase price of such goods (sic). He explained that when iron and steel is sold to a registered dealer on declaration in the prescribed manner, it is exempted from sales tax but exemption from levy on sales tax does not mean that iron and steel are not taxable under section 6 of the State Act, if the same is sold to an unregistered dealer, without declar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied." On a plain reading of this definition it would be clear that the conversion of one category of iron and steel to another is manufacture within the meaning of above definition. 9.. The Supreme Court in Devi Dass Gopal Krishnan v. State of Punjab [1967] 20 STC 430 has very clearly propounded that making iron rods and iron wires from scraps of iron, is a manufacturing process. The Supreme Court has observed: "Now coming to Civil Appeals Nos. 39 to 43 of 1965, the first additional point raised is that when iron scrap is converted into rolled steel it does not involve the process of manufacture. It is contended that the said conversion does not involve any process of manufacture, but the scrap is made into a better marketable commod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eviability of tax. 13.. Sub-section (1) of section 6 of the State Act provides for levy of tax and speaks of taxable turnover which has been defined under section 2(r) of the Act. 14.. Learned counsel appearing for the petitioner, heavily relying upon sub-clause (iii) of clause (r) of section 2 which defines taxable turnover and referring to expression "circumstance" as occurring in sub-section (1) of section 7 of the State Act, strenuously urged that purchase tax could not be levied on the petitioner. This submission deserves to be rejected. Reading section 7(1) as a whole, and coupled with our conclusion as recorded above, that the goods scrap iron as purchased by the petitioner is used or consumed in the manufacture or processing of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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