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TMI Blog2009 (7) TMI 1192X X X X Extracts X X X X X X X X Extracts X X X X ..... cast-iron casting to produce things like pipes, manhole covers or bends, these cannot be regarded as "cast iron castings" and cannot be treated as "declared goods" under section 14(iv) of the Central Sales Tax Act, 1956, inasmuch as we have come to the conclusion that the goods supplied are to the prescribed specifications and dimensions and measurements of the purchaser for their immediate use in their manufacturing activity in all finished form, the one and only conclusion that could be arrived would be that the goods supplied by the assessee would not come within the purview of item 4(i) of the Second Schedule to the TNGST Act. Hence, we are not able to take a different view than the one taken by the Appellate Tribunal. Contention o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods. An inspection was carried out in the place of business of the assessee by the Department, which revealed that the commodity sold by the assessee to certain specified customers were not rough castings, but patterns assessable at eight per cent as residual item classified under entry 63 of Part D up to July 16, 1996 and at the rate of eleven per cent under entry 67 of Part D of the First Schedule with effect from July 17, 1996. The assessing officer therefore revised the assessment order for the years 1994-95, 1995-96, 1996-97 and 1997-98. For the assessment year 1998-99, regular assessment order has been passed assessing the goods at the higher rate of tax as applicable, as mentioned above. The assessing authority has also invoked th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under sections 16(2) as well as 12(3)(b) of the Act was set aside by the Tribunal. The correctness of the same is now canvassed before us by filing these writ petitions. Mr. Ravindran, learned counsel for the assessee, has placed much reliance upon the finding recorded by the Additional Appellate Assistant Commissioner in its order, wherein it is stated that the assessee have manufactured dies or patterns as per the specifications given by the customers out of the cast iron by the process of moulding the molten metal. The same goods have undergone no other mechanical process further and were delivered to the customers as such as moulds in rough form. But the said finding was reversed without any material whatsoever, by the Tribunal. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in heavy electrical goods and T.V.S. Suzuki motor cycle. Instead of they themselves manufacturing those components, they give orders to persons like the assessee and get the goods manufactured from them and use them in the manufacture of their product. If the contention of the assessee that what was sold to the customers is only the rough casting and rough mould and these mould must undergo further mechanical process of polishing and machining at the hands of the customers to suit the manufacturing activities of their product is correct, then, there is no necessity for them to give a purchase order to the persons like the assessee to get the materials in the rough form and further doing the exercise of making it suitable for the goods man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the case of State of Tamil Nadu v. Pyare Lal Malhotra reported in [1976] 37 STC 319, and in the case of Vasantham Foundry v. Union of India reported in [1995] 99 STC 87, which examined the difference between the cast iron and other finished products in the context of entry 4 of the Second Schedule, and uniformly held that cast iron casting in its basic or rough form must be held to be cast-iron, but, if thereafter any machining or polishing or any other process is done to the rough cast-iron casting to produce things like pipes, manhole covers or bends, these cannot be regarded as cast iron castings and cannot be treated as declared goods under section 14(iv) of the Central Sales Tax Act, 1956, inasmuch as we have come to the concl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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