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TMI Blog1999 (3) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... dis, in respect of tax payable under this Act for sale of cast iron castings; .................. Provided further that if and to the extent to which such turnover relates to cast iron castings, all the provisions of this Act including the rate of tax applicable to goods mentioned in sub-item (i) of item (a) of entry 2 of Fourth Schedule shall apply mutatis mutandis in respect of tax payable under this Act for sale of cast iron castings. 3.. The petitioner is a manufacturer of iron castings. In the assessment order for the year 1993-94 sale of rough iron castings for the period April 1, 1993 to August 31, 1993 assessed under Sl. No. 2 of the Fourth Schedule to the Act at 4 per cent, while in respect of the period from September 1, 199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ature or the size of the mould will not decide the question whether the end-product will be cast iron or not. Cast iron has to be in some shape, whether as a bar, as a billet or in some other form. The molten metal has to be poured into some mould to obtain cast iron so that it can be traded, transported and used in obtaining finished goods out of it. It is not the shape of this rough mould that is determinative of the issue. What is determinative is whether it is finished product or only a rough mould to be used in manufacturing finished products. The fact that the rough mould approximates in shape to the finished goods that will be ultimately made out of it does not make it any the less a rough mould. What emerges from the moulds is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .. After the decision in Bengal Iron Corporation [1993] 90 STC 47 (SC), proviso referred to above were inserted by Act No. 18 of 1994 retrospectively and were omitted with effect from April 1, 1993. The second proviso inserted by Act No. 18 of 1994 with effect from April 1, 1993 was deemed to have been amended with effect from September 1, 1993. The effect of these proviso was that for the period from April 1, 1993 to August 31, 1993, though the tax was levied on cast iron castings at 4 per cent but these castings were not considered to be within the category of iron and steel. The net result of this was that the manufacturers were not entitled to have a set-off, of the tax paid on purchase of scrap which is used in the manufacture of iron ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 per cent only. The sales of the petitioner of unmachined cast iron castings cannot be subjected to tax as unclassified item or taxable under section 5(1) of the Karnataka Sales Tax Act. In the assessment year, the assessing authority has not considered the transaction of machined and unmachined cast iron separately. The assessment orders are accordingly quashed and assessing authority is directed to treat the sale of unmachined cast iron castings as that of declared commodities falling under section 14 of the Central Sales Tax Act and covered by entry 2 of Fourth schedule of the Karnataka Sales Tax Act. 12.. In view of the above explanation regarding the scope of proviso with regard to machined cast iron castings as held in Bengal Iron ..... X X X X Extracts X X X X X X X X Extracts X X X X
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