9911796707
TMI Blog1995 (5) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... plicant No. 1. In spite of hardening and tempering the cold rolled strips, the finished goods, it is alleged, remain cold rolled strips, and those are also known in the market as such. No new commercial commodity comes into existence by such hardening and tempering. Walzen Strips Pvt. Ltd., on the other hand, purchases hot rolled strips from Tata Iron and Steel Company Ltd., and converts the same into cold rolled strips and sells them to various parties including applicant No. 1, which is duly registered as a dealer under the Bengal Finance (Sales Tax) Act, 1941 (hereinafter referred to as "the 1941 Act"). It is also registered as a dealer under the Central Sales Tax Act, 1956 (hereinafter referred to as "the 1956 Act"). Applicant No. 1, was granted eligibility certificate under rule 3(66a) of the Bengal Sales Tax Rules, 1941, up to September 11, 1986. After the period of eligibility certificate expired, applicant No. 1, started paying taxes under the 1941 Act and 1956 Act and such tax was paid on sales of hardened and tempered cold rolled strips up to July 1993. An assessment in respect of applicant No. 1, was completed under section 11(1) of the 1941 Act up to the period ending D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be issued unless tax was paid from the period ending November 1993. Applicant No. 1 was also directed to revise the returns and to pay the tax on the sales. By letter dated August 29, 1994, applicant No. 1 again mentioned all the facts to respondent No. 1 requesting to issue declaration forms. In spite of several attempts, no declaration form was issued and no order was also passed on the application for declaration forms. Hence, the present application for a declaration that no tax is payable on such sales and for direction on the respondents so that they do not charge any tax under the 1941 Act on the sales in view of section 15 of the 1956 Act. There is a prayer also for refund of tax already paid. Applicant No. 1 also prays for quashing any purported order passed rejecting the declaration forms. The application has been resisted by the respondents. Their case in the affidavit-in-opposition is that respondent No. 1 simply informed applicant No. 1 that he would refer the matter to the Deputy Commissioner for his opinion in view of the point involved. Applicant No. 1 was also defaulting in payment of arrear taxes for which instalments were granted, as soon as it came to know ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said sub-item below: "(vi) sheets, hoops, strips and skelp, both black and galvanised, hot and cold rolled, plain and corrugated, in all qualities, in straight lengths and in coil form, as rolled and in rivetted conditions." Mr. Chakraborty relies on the decision of this Tribunal in the case of Hindusthan Wires Ltd. reported in [1995] 97 STC 652; [1994] 27 STA 190, judgment dated January 12, 1994, in which it was held that wire manufactured out of steel rods and wire rods are not different commodity within the 1941 Act read with section 14(iv) of the 1956 Act and sales of wires as finished goods would not be liable to sales tax again, if tax was paid on raw materials, namely, steel rods and wire rods. Mr. Chakraborty submits that this judgment of this Tribunal has been in effect approved by the Supreme Court in view of the decision on which he has placed reliance. Mr. Chakraborty relies on the case of Telangana Steel Industries reported in [1994] 93 STC 187. In that case, the Supreme Court held that where wire rods purchased by the applicant had suffered sales tax in Andhra Pradesh, no further sales tax could be realised from the applicant on his sales in that State of iron wir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... language of sub-item (vi) of section 14(iv) from which it will be clear that all qualities of strips are covered by the same subitem. After taking the purchased goods through the manufacturing process, as explained by applicant No. 1, what is produced is certainly a different commodity for the purpose of use in specified industries for a specified purpose, but they also remain "strips" as understood within the meaning of sub-item (vi). Accordingly, the intention of section 14 has to be carried out while giving exemptions or making assessments under the said Act, namely, the 1941 Act. In view of section 15 of the 1956 Act, if at an earlier stage tax has been imposed under the 1941 Act within West Bengal, no further tax can be levied at a different point within the State of West Bengal on the sales of strips, although they may, for other purposes, be considered to be different commodities. In other words, even though the goods purchased and the goods sold by applicant No. 1 may be different commodities in other contexts, in the context of sections 14 and 15 of the 1956 Act these must be treated as the same commodity for the purpose of levy of tax by the State. Section 15 imposes c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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