2001 (6) TMI 799

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..... and 1998-1999, as per the orders of assessment passed on November 16, 1995, April 2, 1997, January 7, 1998, July 2, 1999 and February 15, 2000 subjecting M.S. flanges to tax at 4 per cent under entry 2(a)(xi) of the Fourth Schedule read with section 5(4) of the Act. 3.. When the matters stood thus, the Assistant Commissioner of Commercial Taxes, Cross Verification III, South Zone, Bangalore (second respondent) inspected the business premises of the petitioner on August 6, 1999 and issued a notice dated December 20, 2000 under section 29(1)(e) and 29(2)(e) read with section 28(1) and section 31 of the Act alleging that the mild steel flanges traded by the petitioner cannot be classified under entry 2(a)(xi) of the Fourth Schedule and that .....

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..... issued under section 12-A and in para 7 of the statement of objections, the respondents have clearly admitted that what is dealt with by the petitioner are mild steel flanges. 7.. The dictionary meaning of a "flange" is a projecting edge, rim or flank added for strength or for connecting with another object or part. The Indian Standard Specification for steel pipe flanges discloses that flanges can be of different types, that is integral, welding neck, plate, screwed boss, slip-on boss, loose or blank for use in steel pipes for carrying oil, water, steam, air, gas and chemicals. They can be forged cast, plate or flat. 8.. The relevant entries are extracted below: Entry 2(a)(xi) of the Fourth Schedule: "(a) Iron and steel, that is t .....

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..... ge need not necessarily always be a fitting for a tube. It is a projecting rim added for strength or for connecting with another object or part. Therefore, whether a mild steel flange falls under entry 2(a)(xi) of the Fourth Schedule or not will depend on the fact whether it is intended to be used as a fitting for steel tube or for something else. But, if it is not an "iron fitting" it may not fall under entry 6 of Part P of the Second Schedule. This factual aspect has to be examined by the assessing authority. 11.. The assessing authority should also keep in view the fact that ever since the introduction of entry 2(a)(xi) in the Fourth Schedule with effect from July 15, 1975, mild steel flanges have been taxed at 4 per cent under the s .....

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