In Schedule I of the said Act, iron and steel were declared essential for the life of the companymunity.
The respondent made a default in furnishing the returns prescribed by s. 7 i of the Act for the period April 1, 1954, to March 31, 1955.
Thereafter, the Government of Madhya.
39 of the Notification.
8,000 and he also imposed a penalty of Rs.
The raw materials were only re rolled to give them attractive and acceptable forms.
1,000 under s. 14 1 c of the Act.
They were processed for companyvenience of sale.
Officer, Indore, determined the taxable turnover at Rs.
Appeal by special leave from the judgment and order dated October 24, 1961 of the Madhya Pradesh High Court in Misc.
So long as iron and steel companytinue to be raw materials, they enjoy the exemption.
A Divi sion Bench of the High Court held that the iron bars, flats and plates sold by the respondent were exempted from sales tax under the Notification.
52 of 1952 , which came into force on August 9, 1952.
On the same day he issued demand numberices to the respondent for the payment of the said sales tax and the penalty.
Bharat, in exercise of the powers companyferred by S. 5 of the Act, issued the Notification as also Notification No.
On February 27, 1956, the Sales tax.
The facts are as follows Hiralal, the respondent, is the manager of a joint Hindu family carrying on business in the name and style of Messrs. Tilokchand Kalyanmal.
Parliament enacted Essential Goods Declaration and Regulation of Tax on Sales or Purchases Act, 1952 Act No.
On September 10, 1956, the respondent filed a petition in the High Court of Madhya Bharat afterwards Madhya Pradesh under Arts.
The joint family owns a re rolling mill situated in Indore City called the Central India Iron and Steel Company.
59, dated October 24, 1953.
814 of 1964.
The state has filed the present appeal, by special leave.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
226 and 227 of the Constitution for the issue of appropriate writs quashing, the assessment of tax and penalty and to restrain the State from giving effect to the said orders of the Sales tax Officer.
The Judgment of the Court was delivered by Subba Rao, J. This appeal by special leave raises the question of the intepretation of Item No.
39 of the Notification No.
In that view, the orders of the Sales tax Officer were quashed.
The said family purchases scrapiron locally and imports iron plates from outside and after companyverting them into bars, flats and plates in the Mills sells them in the market.
Petition No.
B. Agarwala and C. P. Lal, for the respondent.
Scrap iron purchased by the respondent was merely re rolled into bars,flats and plates.
125 of 1958.
N. Shroff, for the appellants.
30 of 1950 , hereinafter called the Act.
58, dated October 24, 1953, hereinafter called the Notification, issued by the Government of Madhya Bharat under the Madhya Bharat Sales Tax Act, Samvat 2007 Act No.
2,26,000and the sales tax payable thereon at Rs.
The only question in this appeal is whether the said iron bars, flats and plates are number iron and steel within the meaning of Item No.
