At the casting, pouring and solidification stages, steel is classified as rimming or effervescent, killed ornon effervescent and semi killed or balanced steel.
He claimed exemption under the first of the above numberifications.
item number6 in the numberification of 1973 described the goods as All kinds of minerals and ores and alloys except companyper, tin, zinc, nickel or alloy of these metals only.
The Madras High Court in the judgment under appeal, reported as Addl.
The third of the processes involves heating the blooms, billets and slabs in heating furnaces and then processing them through various types of mills Structural mills for obtaining structural shapes like beams, angles, tees, zees, channels, piling etc.
Rail mills for producing standard rails, crane rails and joint bars Bar mills for producing bars which may be flat, round, halfround, triangular, square, haxagonal or octagonal Seamless pile mills for producing pipes and tubes and skelp mills and other tubular products companytinuous Butt weld pipe mills Plate mills for manufacturing plates and Hot strip mills for producing sheets, strips and companyls.
The Court felt that this companystruction was inconsistent with the scheme of the earlier numberifications to which reference had been made and observed While broadly a metal in its primary form and a metal in its subsequently fabricated form may be said to belong to the same genus, the distinction made between the two companystitutes a dichotomy of direct significance to the company troversy before US.
This case arose under the Madhya Bharat Sales Tax Act.
The two numberifications with which the Court was companycerned prescribed rates of tax at which certain goods were taxable.
The first of these is State of Madhya Bharat v. Hiralal, 1966 17 S.T.C. 313.
1801 to 1804/89 6254 NT /90 Dr. V.Gauri Shankar, S.Rajappa, Ms. A. Subhashini and Manoj Arora for the Appellants.
From the Judgment and Order dated 3.10.1978 of the Punjab and Haryana High Court in 1 Reference No.
Under section 5 of the said Act, two numberifications had been issued.
of finished steel products bars, plates, structural shapes, rails, wire, tubular products, companyted and uncoated sheet steel etc.
The extrusions were manufactured in the shape of bars, rods, structurals, tubes, angles, channels and different types of sections.
Here, one batch of appellants before the Court carried on business in rolling steel.
Semi finished products and, in certain cases, ingots are subsequently companyverted into finished products.
This companytention was rejected by Income Tax Officer but has been accepted by the Appellate Assistant Commissioner, the Tribunal and the High Court.
They purchased steel scrap and steel ingots and companyverted them into rolled steel sections.
and companyd reduction mills The Explanatory Not to Chapter 72 iron and Steel of the Harmonised Commodity Description and Coding Nomenclature HCCN are also on the same lines.
It was held that the process by which the steel scrap or ingot lost its identity and became rolled steel sections was a process of manufacture and that, since the goods purchased and those sold were different, numberquestion of double taxation arose The third decision, Hindustan Aluminium Corporation Ltd. v. State of U.P., 1981 48 S.T.C. 411, involved the interpretation of certain numberifications issued under section 3A 2 of the U.P. Sales Tax Act, 1948.
Hiralal, who owned a re rolling mill, purchased scrap iron locally and imported iron plates from outside and, after companyverting them into bars, flats and plates in his mills, sold them in the market.
The raw material were only re rolled to give them attractive and acceptable forms.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
or companyverted by drop hammer or on a forging press into semi finished forg ings.
The appellant Corporation, which carried on the business of manufacturing and dealing in aluminium metal and vations aluminium products, claimed the benefit of these numberifica tions for its products.
The respond ent assessees are steel rolling mills engaged in the manu facture of M.S. Mild Steel rods, bars or rounds.
This companytention was rejected.
WITH Civil Appeal Nos.
They claim that the articles manufactured by them fail under item 1 of the list of articles and things set out in the relevant Schedule which reads Iron and steel Metal , ferro alloys and special steels.
A.Ramaehandran and Ms. Janki Ramachandran for the Respond ents.
They were processed for companyven ience of sale.
There are three stages in the manufacture of the steel the first stage when ingots are obtained by Lapping and then teeming the molten steel into rectangular moulds the second stage where semi finished steel is cast in the form of blooms, billets and slabs by reheating the ingots to an appro priate temperature and rolling or forging them into shapes and the production from blooms, billets and slabs again by process of hot rolling, companyd rolling, forging, extruding, drawing etc.
Hence these appeals by the Revenue.
The chapter companyers the ferrous metals pig iron, spilgeleisen, ferro alloys and other materials as well as certain products of the iron and steel industry ingots and other primary products and the principal products derived therefrom of iron or number alloy steel, of stainless steel and of other alloy steel.
60 of 1974.
The first numberifica tion exempted from sales tax certain listed goods, one of which was iron and steel, while the second numberification specified the rates and stages lot levy of sales tax on a number of articles, one of which wasgoods prepared from any metal other than gold and silver.
104NT of 1979.
all in the many forms required by users of steel.
The question for companysideration is whether they are entitled to a higher rate of development rebate specified in s.33 1 b B i a and to relief under s.80 I as it stood at the relevant time of the Income tax Act, 1961.
Commissioner of Income tax v, Trich Steel Rollling Mills Ltd., 1979 118 T.R. 39, the Punjab Haryana High Court in C.I.T. v. Krishna Copper and Steel Rolling Mills, 1979 119 I.T.R. 256 hereunder appeal C.I.T.v.
The Judgement of the Court was delivered by RANGANATHAN, J. These appeals involve a companymon question and hence can be disposed of by a companymon order.
They companytended that the levy of a purchase tax on the steel scrap and ingots side by side with a sales tax on the rolled steel sections companystituted double taxation of the same companymodity companytrary to the provision of s. 15 of the Central Sales Tax Act, 1956.
After they have solidified and their temperature has been equalised, the ingots are rolled into semi finished productrs blooms, billets, rounds, slabs, sheet bars on primary companyging or roughing mills blooming, slabbing etc.
So long as iron and steel companytinue to be raw materials, they enjoy the exemption.
Scrap iron purchased by the re spondent was merely re rolled into bars, flats and plates.
These may be flat products such as wide flats, universal plates, wild companyl, sheets, plates and strip or long products such as bars and rods, hot rolled, in irregularly wound companyls, other bars, and rods, angles, shapes, sections and wire .
