By G. G. Goyal | Chartered Accountant
C. B. Thakar | Advocate
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Central Sales Tax — Section 2(c) and section 14, Delhi Sales Tax Act — Schedule II, Entry 3 — Declared goods — Whether cable trays manufactured from iron and steel is a different commodity and, therefore, does not fall in the category of declared goods?
Facts:
The assessee, a dealer in iron and steel, sold cable trays without charging tax from the purchasing dealers. The Department took the view that the same could not be sold without charging tax from the purchaser on the ground that the goods were not covered by the term ‘iron and steel’ within the meaning of section 14((iv)(vii) of Central Sales Tax Act, 1956. Reassessment was made and additional demand of certain amount as tax along with interest u/s.27(1) of Delhi Sales Tax Act, 1975, was raised. Appeals filed before the Additional Commissioner as well as the Tribunal were dismissed. On references:
Held:
That it could not be said that the cable trays — perforated as well as ladder types continued to remain iron and steel plates. Both types of plates were manufactured out of mild steel sheets of 2mm thickness. The types of processes involved brought an ultimate product which was distinct and different. There could not be any doubt that the plates have undergone transformation into cable trays and the process involved was manufacturing. These were sold in the market to meet different mechanical and engineering needs as distinct from the plain or chequered plates. Therefore, the ‘cable trays’ sold by the dealer could not fit in the category of ‘iron and steel plates’ as specified in clause (vii) of sub section (iv) of section 14 of the CST Act.
