9911796707
TMI Blog1996 (3) TMI 522X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Schedule to the Entry Tax Act. The case of the applicant is as follows: 2.. The applicant carries on the business of manufacturing pipe at its factory situated in the State of West Bengal and for the purpose of manufacturing pipe, the applicant purchases hot rolled coil from Steel Authority of India Limited. The material is despatched to the applicant by M/s. Steel Authority of India Limited from its Bokaro Steel Plant. The applicant was given to understand by the authorities under the Entry Tax Act that the said goods were exigible to tax under the Entry Tax Act as iron and steel goods at Rs. 10 p.m.t. However, the said H.R. coil is not a specified goods under the Entry Tax Act. The applicant however, paid the tax under the Entry Tax Act on H.R. coil at Rs. 10 p.m.t. without prejudice to its rights and contentions. Such assessment continued up to August 4, 1994. However, on October 26, 1994, the applicant imported H.R. coil from M/s. Steel Authority of India Limited when, for the first time, he was informed by the respondent No. 1 that tax on H.R. coil would be levied at one per cent ad valorem. The petitioner protested against the said assessment order but in order to avo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and skelp in coil by treating the same under item No. 53(d)(iii) of the Schedule to the Entry Tax Act which relates to hoops and strips. The goods, namely, hoops and strips cannot be equated with H.R. coil and skelp in coil. Strips and sheet are completely different items and it is wellknown that pipe is manufactured out of sheet. Therefore, it cannot be said that H.R. coil and skelp in coil fall within item No. 53(d)(iii) of the Schedule to the Entry Tax Act. The petitioner therefore has approached this Tribunal against the imposition of taxes on H.R. coil and skelp in coil at one per cent ad valorem. 5.. The respondents have opposed the application by filing an affidavit-in-opposition and their submission is that hot rolled coil or H.R. coil is nothing but strips within the meaning of serial No. 53(d)(iii) of the Schedule to the Entry Tax Act. Both H.R. coil and skelp in coil are nothing but strips of iron and steel and entry tax was collected from the applicant in accordance with law in terms of serial No. 53(d)(iii) of the Schedule to the Entry Tax Act. The Steel Authority of India Limited, Central Marketing Organisation mentions in their commercial literature that hot rolled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e applicant argued that the material imported by the applicant was hot rolled coil and skelp in coil neither of which has been specified in the Schedule to the Entry Tax Act. Item 53 is the item in the Schedule referring to iron and steel items. Hence, if the material is to be considered to be exigible to tax under the Entry Tax Act, then it must be specified in item 53 of the Schedule. A perusal of item 53 of the Schedule will show that H.R. coil and skelp in coil are not specified at all and therefore they are not specified goods. Hence, no entry tax is payable on the material imported by the applicant. In this connection, Mr. Bhattacharya referred to the submission made in the affidavit-in-opposition justifying treatment of H.R. coil and skelp in coil as nothing but strips of iron and steel and their reference to the Explanation (xiv) under item No. 25(16) of the Schedule I appended to Central Excises and Salt Act, 1944 and stated that the respondents cannot borrow the meaning of any term given in another Act for the purposes of explaining the meaning of the same term in the Entry Tax Act. This is all the more obvious in the present case because the Central Excises and Salt Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd steel and therefore they can be at the most charged to tax at Rs. 10 p.m.t. 8.. Mr. S.N. Bose, learned advocate for the respondents argued that hot rolled coil and skelp in coil were nothing but strips within the meaning of serial No. 53(d)(iii) of the Schedule to the Entry Tax Act. The Central Marketing Organisation of the Steel Authority of India Limited (SAIL) has stated in their marketing literature "Hot rolled coils and skelp from SAIL" that hot rolled coils are flat products rolled from slabs in rectangular cross-section in coil form and "skelp" is a narrow "strip" which is produced from well-soaked slabs. Since strip has been categorically provided as an item in the Schedule to the Entry Tax Act, no separate mention need be present regarding skelp which is nothing but narrow strip. He referred in this connection to the decision of the Calcutta High Court reported in State of West Bengal v. Nitai Mohan Saha [1989] 74 STC 221 where it has been held that if genus is specified, species need not be specified. In the instant case since "strip" has been clearly specified "skelp" which is narrow strip need not be separately specified. 9.. Mr. M.L. Bhattacharya in his argument i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is true, as has been argued on behalf of the applicant, that hot rolled coil and skelp in coil are not defined in the Entry Tax Act; and therefore, the popular meaning of these terms will have to be considered for the purpose of deciding upon their taxability. According to the applicant, skelp in coil and H.R. coil are nothing but iron sheet and is known as such in the trade. They have not offered any evidence in favour of their assertion. The respondents have referred to the commercial literature issued by the SAIL in support of their case and the applicant also has sought to show that such literature does not support the respondent's case. 12.. While the commercial literature regarding hot rolled coil and skelp issued by SAIL is no doubt relevant regarding the appropriate meaning of the terms "hot rolled coil" and "skelp", we may also profitably examine the definitions of these terms given in the publications of the Bureau of Indian Standards. Such publications are well-known in the trade; and therefore, the specifications and definitions given in such publications can be considered to be an authoritative indicator of the meaning of any particular term as popularly understoo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... materials sent by the Bokaro Steel Plant of Steel Authority of India Limited to the applicants, as per the invoices annexed by the applicant, are nothing but hot rolled strips supplied in coil form. 14.. The remaining invoices which showed despatch from Durgapur Steel Plant, Durgapur mentioned that the material supplied was skelp. Skelp again has been defined in IS-1956 (Part IV)-1975 at serial No. 2.103 which is as follows: "2.103 Skelp-Skelp is strip (See 2.111) Note -- Skelp is historically coined from the word 'skelping', an operation in which long narrow strip was beaten into the shape of a tube which was heated to a very high temperature and rolled, resulting in forge welding of the seam." Serial No. 2. 111 referred to in the definition of skelp has already been referred to earlier in connection with the definition of "strip". 15.. Keeping in view the definitions given in the Glossary of Terms Relating to Iron and Steel issued by the Bureau of Indian Standards, we may now examine the various commercial literature issued by the Steel Authority of India Limited. As far as Bokaro Steel Plant is concerned, it has mentioned that "Bokaro HR coils are produced out of LD Conver ..... X X X X Extracts X X X X X X X X Extracts X X X X
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