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TMI Blog1978 (1) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... rity industry ' as envisaged in the Income-tax Act, 1961, for the purpose of sections 33(1)(b)(B)(1)(a) and 80-I ? " An identical question came up for consideration before the Kerala High Court twice. The matter was dealt with by a Division Bench in the first instance in the decision in CIT v. Mittal Steel Re-rolling Allied Industries [1977] 108 ITR 207 (Ker), and in view of the doubts about the correctness of the decision being raised, the question was referred to a Full Bench later under another reference, and the Full Bench considered the question in the decision reported in CIT v. West India Steel Co. Ltd. [1977] 108 ITR 601 (Ker) [FB]. In both the decisions the view had been taken that M. S. Rods and steel sections manufactured by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and plates. They were processed for convenience of sale. The raw materials were only rerolled to give them attractive and acceptable forms. They did not in the process lose their character as iron and steel. The dealer sold 'iron and steel' in the shape of bars, flats and plates and the customer purchased 'iron and steel' in that shape. We, therefore, hold that the bars, flats and plates sold the assessee are iron and steel exempted under the notification. " The term " iron and steel " was mentioned in the notification construed by the Supreme Court under item 39. Item 9 therein referred to goods prepared from any metal other than gold and silver. Referring to these two items, the decision of the Calcutta High Court in Indian Steel Wir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lates retained their character as a raw material and could not be held to be goods manufactured from iron and steel. To be noted is that the item in the Madhya Bharat Sales Tax Act did not read 'iron and steel (metal)' is in the statute before us and no other goods made out of iron and steel was specifically exempted. " It is clear from the decision of the Supreme Court from the passage that had been extracted by the Kerala High Court which we have extracted here, that the " iron and steel " in the shape of bars, flats and plates are iron and steel exempted under the notification. On the reasoning therein we come to the conclusion that M. S. rods will also be iron and steel. The only question is whether the addition of the word " metal " ..... X X X X Extracts X X X X X X X X Extracts X X X X
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