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TMI Blog1991 (3) TMI 369X X X X Extracts X X X X X X X X Extracts X X X X ..... as relied upon its several previous decisions on this question. The controversy is about the interpretation of the entry relating to an item of section 14 of the Central Sales Tax Act, 1956 and it is useful to extract it: "14. Certain goods to be of special importance in inter-State trade or commerce.-It is hereby declared that the following goods are of special importance in inter-State trade or commerce: (i) to (iii).................. (iv) iron and steel, that is to say,- (i) pig iron and cast iron including ingot moulds, bottom plates, iron scrap, cast iron scrap, runner scrap and iron skull scrap; (ii)..................." The Andhra Pradesh General Sales Tax Act provides for levy of tax on the declared goods in accordance with its section 6 read with Schedule III. Item 2(i) of Schedule III is identical to the entry in section 14 of the Central Act referred to above. The counsel for the petitioner has also referred to (1) letter No. 24/14/ 76-ST, Department of Revenue and Banking dated February 28, 1977; (2) letter from Government of India in F. No. 24/10/80-CT dated January 31, 1984 and (3) Order of the Government of Andhra Pradesh issued under section 42(2) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , silicon and other alloying elements if required, i.e., cast iron castings are covered under the term "cast iron". It may also be clarified that "cast iron" includes grey iron, white iron, chilled malleable and nodular iron. Ingot moulds and bottom plates are nothing but cast iron castings." (3) "G.O. Ms. No. 383, Revenue (S) Department dated April 17, 1985. The Andhra Pradesh Small Scale Industries Association, Vijayawada, requested the Government to clarify whether 'cast iron' and 'cast iron casting' are one and the same commercial commodity. (2) This matter was examined at length by the Government of India in consultation with the Ministry of Law (Department of Legal Affairs) and Director-General of Technical Development. The Ministry of Finance, Department of Revenue, Government of India, clarified, in their letter F. No. 24/10/90-CT dated January 31, 1984 to the effect that 'cast iron castings' are covered within the term 'cast iron'. (3) Government have examined in detail the legal aspects of the issue and observe that the term 'cast iron including ingot moulds, bottom plates' as in sub-item (i) of item 2 in the Third Schedule to the Andhra Pradesh General Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of the word used "including" in the entry. It is further contended that the Government of India in their letters have clarified that cast iron castings are covered by cast iron and the State Government has also issued the aforesaid G.O. subsequently under section 42(2) of the State Act clarifying that the cast iron castings are covered within the term cast iron. It is contended that the said G.O. is binding on the various assessing authorities in the State as the goods sold by them are cast iron castings. The learned counsel for the petitioner has relied upon the decision of the Supreme Court reported in Gujarat Steel Tubes Ltd. v. State of Kerala [1989] 74 STC 176 where it has been held that steel tubes even after undergoing a process of galvanising continue to be the same commodity for the purpose of levy of sales tax on declared goods. He has also referred to the decision of the Supreme Court reported in Deputy Commissioner of Sales Tax v. Pai Co. [1980] 45 STC 58 where the controversy was whether under the Kerala General Sales Tax Act, 1963, G.I. pipes are sanitary fittings. These two decisions do not help us in resolving the controversy. He has next relied upon a decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tended to give an extended meaning to cast iron, so as to include the products made out of cast iron like manhole covers and C.I. pipes for the purposes of entry (iv)(i). The word "includes" may be employed by the Legislature to extend the meaning given in a definition clause. But it is also to be noticed that "includes" is also used to indicate an exhaustive list of items mentioned therein. It will, therefore, depend upon the context in which the Legislature has used the words. In this case, the word used is "including" and not "includes" and we are not dealing with a definition clause. It is used in section 14 of the Central Sales Tax Act which declares certain goods to be of special importance in interState trade or commerce. In view of article 286 of the Constitution of India the effect of a declaration contained in section 14 is that the powers of the State Legislature are fettered by provisions of Central law like section 15 of the Central Sales Tax Act. The distribution of legislative lists under article 246 of our Constitution indicates that sales tax is essentially a State subject with limited overriding powers for Parliament. Keeping these considerations in view, can th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned keeping in view the statutory provisions of the Central Act which are repeated in Schedule III. Section 42(2) of the State Act contemplates a clarification where a difficulty is found in giving effect to the provisions of the State Act in the circumstances mentioned therein. We find no difficulty in giving effect to the provisions of the State Act which has merely copied the Central Act. The G.O. is issued based on the letters of Central Government. The letters of the Central Government and the G.O. are with reference to cast iron and cast iron castings, while the entry is "cast iron, including ingot moulds, bottom plates, etc.". It is open for the State Government to exempt any particular goods from the levy of tax, but this has not been done. The counsel for the petitioner placed reliance on two Bench decisions of this Court reported in Munaga Singaraiah Sreshty and Sons v. State of Andhra Pradesh [1977] 40 STC 89 and Adarsh Foundries v. Commissioner of Commercial Taxes [1988] 70 STC 151, on the effect of the Government instructions. In view of what we have pointed out above, the ratio of the said decisions does not apply to the present case. Therefore, neither the lett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ember, 1984. In all the revisions the principal question is common and the only distinguishing feature in the revision relating to the assessment year 1974-75 filed under the U.P. Sales Tax Act is that one more plea has been raised, that the Tribunal decided the appeal without disposing of grounds Nos. 3 and 5, having been raised in the memo of appeal. So all the three revisions are disposed of together by a combined order. As none appeared for the opposite party, only learned Standing Counsel for the Revenue was heard on the last date as well as today. The main controversy in these revisions is whether the manhole covers can be said to be the cast iron casting and if that is so whether they are covered by the entry as described in sub-section (iv), clause (i), of section 14 of the Central Sales Tax Act, 1956 (for short, "the Act, 1956"). This entry runs as follows: "Pig iron and cast iron including ingot moulds, bottom plates, iron scrap, cast iron scrap, runner scrap and iron skull scrap;" Section 14 enumerates the goods of special importance in inter-State trade or commerce which are liable to tax at a lower rate of 4 per cent. The assessee is engaged in the manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X
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