9911796707
TMI Blog2006 (3) TMI 765X X X X Extracts X X X X X X X X Extracts X X X X ..... (S. No. 840), the State Govt. (1) hereby exempts from tax, the sale of iron and steel on the following conditions, namely: 1. That such iron and steel is used as raw material in the manufacture of iron and steel as specified in Section 14(iv), CST Act, 1956. 2. That such manufactured product is sold within the State or in the course of inter-State trade or commerce; and 3. That such manufacturer shall issue a declaration to this effect in Form ST 17 appended to the Rajasthan Sales Tax Rules, 1995, to the selling dealer. 3. The assessee-petitioner purchased during the period in question angles, channels, flats, Bars and other items of iron and steel and manufactured by fabrication activity steel structures as per specifications g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv)(v) of the Act of 1956 and, therefore, imposition of additional tax was not justified. The assessee-petitioner had paid 4% RST on sale of steel structurals to RSEB also. The Revenue took the matter in second appeal before the Tax Board where the appeal of the revenue was allowed and the Tax Board, setting aside the order of D.C. (Appeals) held that the Assessing Authority was justified in imposing the tax and the goods manufactured by assessee-petitioner could not be held to be falling within the definition of Section 14(iv)(v) of the Act. 6. Being aggrieved by the order-of Tax Board, these revision petitions have been filed under Section 86 of the Act by the assessee-petitioner. 7. Heard learned Counsel and perused the impugned or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into existence new commercial articles, that stand would not only be incorrect perse but would also support the case of the revenue as the condition No. 1 of the said notification dated 12.3.1997 would stand violated on the own admission of assessee-petitioner. Secondly he submits, relying on the judgment of this Court in CTO v. Vishwakarma Engineering Words, Jodhpur 2005 (13) Tax Up-Date 11, that amount of processing done on the iron articles of bending them on corners and making holes therein has been held to be not amounting to manufacturing by this Court and, therefore, imposition of additional purchase tax by the assessing authority in the present case was justified and, therefore, the order of Tax Board deserves to be upheld. He also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the finished goods or the manufactured goods which are required to fall under Section 14(iv) of the Act of 1956 and not the raw material itself. The manufacturing activity is necessary for complying with the condition No. (1) of the modification. 11. Therefore, without going into the contention of assessee-petitioner that whether it amounts to manufacturing or not, this case can be decided only the second contention raised in the alternative whether manufactured goods i.e. steel structurals fall within the ambit and scope of Section 14(iv)(v) of the Act or not. The goods sold by the assessee-petitioner as borne out from the impugned order are steel structurals made by fabrication activity by various firms of iron steel like angles, cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the CST Act. There is no reason why goods manufactured and supplied by assessee could not fall within the meaning of Section 14(iv)(v) of CST Act, 1956. Accordingly, the respondent assessee is held entitled to benefit of exemption from tax under Notification dated 12.3.1997. 13. The contention whether fabrication activity amounts to 'manufacturing' or not, even though not required to be dilated upon for deciding the eligibility of petitioner to avail exemption under the said notification dated 12.3.1997 is also not without merit. In the face of fact that 4% tax on goods sold by assessee to RSEB stands paid and if it is held that there is no manufacturing activity, in view of single point levy tax system under RST Act, the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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