Central Sales Tax- Declared Goods-Iron and Steel- Stainless Steel Wire-Does Not Fall under Entry “Tool, Alloy and Special Steels”- section 14((iv) (ix) of the Central sales Tax Act, 1956.

Central
Sales Tax- Declared Goods-Iron and Steel-Stainless Steel Wire-Does Not
Fall under Entry “Tool, Alloy and Special Steels”- section 14((iv) (ix)
of the Central sales Tax Act, 1956.

The
appellant is engaged in manufacture and sale of Stainless Steel Wire,
and was assessed under the UP sales tax Act and CST Act for the period
1999-2000 in which the assessing authorities levied tax @ 4% on sales of
Stainless Steel Wire by treating it declared goods covered by entry(ix)
of clause (iv) of section 14 of the CST Act, relating to “ Tool, Alloy
and Special Steels of any one of the above categories”. Subsequently,
the revising authorities issued notice to reopen the assessment to levy
higher rate of tax on sales of such Stainless Steel wire being not
covered by the term iron and Steel as defined in section 14(iv) of the
CST Act. The appellant filed writ petition in the Allahabad High Court
against issue of the said notice. The High Court dismissed the writ
petition holding that “stainless steel wire” is not covered under the
item “tool, alloy and special steels” in entry (ix) and, therefore, does
not fall under “iron and steel” as defined under clause (iv)of section
14 of the Central Act and therefore the provision of section 15 of the
Central Act does not apply. The appellant filed an appeal to the Supreme
Court against the said judgment of High Court.

Held

The
language used in entry no. (ix) is plain and unambiguous and that the
items which are mentioned there are “tool, alloy and special steels”. By
using the words “of any of the above categories” in entry no. (ix),
would refer to entries (i) to (viii) and it cannot and does not refer to
entry No. (xv). However, entry (xvi) of clause (iv) would be included
in entry (xvi) particularly within the expression now therein any of the
aforesaid categories. Therefore, the specific entry “tool, alloy and
special steels” being not applicable to entry (xv). Therefore, it was
held that the stainless steel wire is not covered within entry (ix) of
clause (iv) of section 14 of the Central Sales Tax Act, 1956.