L.N.RAY - (1.) THE short question raised in this application under section 8 of the West Bengal Taxation Tribunal Act, 1987, is whether cast iron castings, such as, man-hole covers, certain parts of fans and top and bottom covers of ceiling fans are included in the expression "cast iron" used in section 14 (iv) (i) of the Central Sales Tax Act, 1956, having regard to the provisions of section 5 (2) (a) of the Bengal Finance (Sales Tax) Act, 1941.
(2.) THE applicant is a registered dealer under the said 1941 Act both as a manufacturer and a reseller in respect of various goods including cast iron castings. It manufactures and sells as well as purchases and resells cast iron castings of the above descriptions. On December 4, 1987, it applied for declaration forms in form No. XXIV, but the Commercial Tax Officer rejected the prayer, holding that he was not satisfied that the items mentioned in his order and sold by the applicant were out of purchased goods included in section 5 (2) (a) (ii) of the said 1941 Act and hence he doubled the bona fide requirement of such forms. This was done, despite the fact that it was stated in the relevant column of the registration certificate that cast iron castings would be free of tax if the same were purchased for resale in West Bengal. That column was intended for declared goods under sections 14 and 15 of the Central Sales Tax Act, 1956, and section 5 (2) (a) (ii) of the said 1941 Act. The applicant claims to have purchased cast iron castings of the total value of Rs. 29,12,076. 64 during the period from July 19, 1982 to September 30, 1985, on the basis of prior orders. Apart from other declaration forms it required four forms of "e" series for the said four years. Some forms of "b" and "c" series were issued on September 30, 1982 and April 7, 1983, but thereafter no declaration form was issued. So, the applicant moved a writ petition under article 226 of the Constitution of India in Calcutta High Court, being C. O. No. 4884 (W) of 1988 in the appellate side, in which a conditional interim order was made on May 16, 1988. But the Commercial Tax Officer even then refused to issue declaration forms. The applicant then moved the Assistant Commissioner and, thereafter, the Additional Commissioner, both of them maintained the Commercial Tax Officer's order. The High Court's interim order contained a condition that declaration forms would be issued "if the same are declared goods", and the Commercial Tax Officer held the view that the goods in question were not declared goods. According to the applicant, the Government of India issued a notification dated February 28, 1977, in consultation with the Director-General of Technical Development and the Ministry of Law and Justice that "cast iron" in section 14 (iv) (i) of the Central Sales Tax Act, 1956, includes "cast iron castings". The respondents have not used any affidavit-in-opposition. The records of C. O. No. 4884 (W) of 1988 have not yet been forwarded by the High Court to this Tribunal for disposal in terms of section 15 of the West Bengal Taxation Tribunal Act, 1987. The respondents have, however, contested the applicant's claim at the hearing. It may be noted that by virtue of the proviso to section 15 (2) (b) of the West Bengal Taxation Tribunal Act, 1987, the interlocutory order of the High Court dated May 16, 1988, in C. O. No. 4884 (W) of 1988 expired on May 22, 1989. But, by our interim order in this case dated July 10, 1989, direction was given to issue necessary declaration forms upon the applicant making a security deposit of Rs. 50,000 within two weeks.
(3.) THE facts set out above are not controverted. It was submitted during arguments that only a part of the total amount of value for which declaration forms are sought for the purpose of section 5 (2) (a) (ii) of the 1941 Act represents the value of goods which were purchased and resold, whereas the rest of the total amount represents the value of goods purchased for manufacture of such goods which were sold by the applicant. The decision in this case turns upon construction of the expression "cast iron" used in section 14 (iv) (i) of the Central Sales Tax Act, 1956. The relevant portion of the said provision is reproduced below : " It is hereby declared that the following goods are of special importance in inter-State trade or commerce : (iv) iron and steel, that is to say, - (i) pig iron and cast iron including ingot moulds, bottom plates, iron scrap, cast iron scrap, runner scrap, and iron skull scrap;" ;