J. S. VERMA, C. J. - (1.) THIS revision by the assessee is against the order dated May 3, 1978 passed by the Board of Revenue rejecting the rival contentions of the assessee as well as the department and holding that the goods sold by the assessee are taxable under the residuary entry at serial No. 79 in the notification dated March 8, 1969, at the rate of 7 per cent. According to the assessee, the goods are taxable at the rate of 4 per cent under the entry at serial No. 4 of notification dated July 1, 1975. The department's contention is that the goods are to be taxed at the rate of 10 per cent under the entry at serial No. 45 of the notification dated March 8, 1969.
(2.) THE conflicting entries relied on by the two sides are as under : Entry at serial No. 4 of the aforesaid notification dated July 1, 1975, is as under : " 4. Iron and steel, as defined in clause (iv) of section 14 of the Central Sales Tax Act. " THE relevant portion of clause (iv) of section 14 of the Central Sales Tax Act is contained in sub-clause (iv), which is as under : " (iv) iron and steel, that is to say, - (i) to (iii ). . . . . . . . . . . . . . . . . . . . . . . . (iv) steel bars (rounds, rods, squares, flats, octagons and hexagons, plain and ribbed or twisted, in coil form as well as straight lengths);" THE entry at serial No. 45 of the aforesaid notification dated March 8, 1969, is as under : " 45. Tyres, tubes, spare parts and accessories of motor vehicles excluding those meant for tractors. " The finding of fact recorded by the Board of Revenue is that the assessee is a manufacturer of iron and steel as a re-rolling mill; the assessee purchases ingots and billets as raw material and makes flat bars of different sizes after re-rolling them; and the flat bars are then sold by the assessee by charging sales tax at the rate of 4 per cent under the aforesaid notification dated July 1, 1975. The question is of the rate of sales tax applicable to the goods sold in this manner by the assessee. It may be mentioned at the outset that neither side has attempted to support the Board of Revenue's conclusion that the residuary entry at serial No. 79 of the aforesaid notification dated March 8, 1969 applies. The only dispute is whether it is the entry at serial No. 4 of the notification dated July 1, 1975 or the entry at serial No. 45 of the aforesaid notification dated March 8, 1969 which is applicable. This dispute has to be decided with reference to the facts already stated. The facts found proved by the Tribunal clearly show that the goods sold by the assessee are flat bars of different sizes prepared from ingots and billets used as raw material after re-rolling them. It is obvious that these flat bars sold by the assessee are incapable of being treated and used as spare parts and accessories of motor vehicles as such in the shape in which they are sold by the assessee. It is a different matter that these flat bars can thereafter be converted into springs used in motor vehicles but for conversion of the same into springs used in motor vehicles some further step or process of manufacture is required after sale of the flat bars of the assessee. Entry at serial No. 45 in the aforesaid notification dated March 8, 1969, obviously includes within its ambit such goods, which at the time of sale can as such be straightaway treated and used as spare parts and accessories of motor vehicles without involving any process of manufacture or conversion into another article. It is, therefore, obvious that this entry cannot include the goods sold by the assessee because flat bars as such sold by the assessee cannot be treated or used as spare parts or accessories of motor vehicles. The entry at serial No. 4 of the aforesaid notification dated July 1, 1975, on the other hand, clearly includes within its ambit the goods sold by, the assessee in the shape of flat bars of different sizes. The expression "iron and steel" used in this entry is to be understood as defined in clause (iv) of section 14 of the Central Sales Tax Act. A bare perusal of clause (iv) itself shows that a wide meaning has been given to the expression "iron and steel" therein. Sub-clause (iv) of clause (iv) of section 14 expressly includes steel bars in any shape including flats whether in coil form or as straight lengths within the expression "iron and steel" so defined.
(3.) IT is, therefore, clear that flat iron and steel bars of different sizes manufactured by the assessee from ingots and billets fall within the definition of "iron and steel" as defined in clause (iv) of section 14 of the Central Sales Tax Act. In view of this conclusion there is no occasion to hold that the goods sold by the assessee fall either under entry at serial No. 45 or the residuary entry at serial No. 79 of the aforesaid notification dated March 8, 1969 as contended by the department or held by the Board of Revenue. Consequently, the revision is allowed. It is held that the above goods sold by the assessee during the relevant period is taxable only at 4 per cent under the entry at serial No. 4 of the aforesaid notification dated July 1, 1975. No costs. Petition allowed. .;