w w w . L a w y e r S e r v i c e s . i n



M/s. Bajrangballi Wire Products Pvt.Ltd. v/s State of Orissa, represented by the Commissioner of Sales Tax, Odisha


Company & Directors' Information:- SALES INDIA PRIVATE LIMITED [Active] CIN = U29191GJ1985PTC007880

Company & Directors' Information:- R K B SALES PVT LTD [Active] CIN = U45202PB2006PTC029932

Company & Directors' Information:- P R SALES CORPORATION PRIVATE LIMITED [Active] CIN = U52399PN2011PTC141408

Company & Directors' Information:- P P PRODUCTS PVT LTD [Active] CIN = U32305WB1991PTC051091

Company & Directors' Information:- K K PRODUCTS LIMITED [Active] CIN = U31300DL1991PLC045521

Company & Directors' Information:- K B PRODUCTS PRIVATE LIMITED [Active] CIN = U51909MH2007PTC169627

Company & Directors' Information:- P K SALES COMPANY PRIVATE LIMITED [Active] CIN = U74140DL2011PTC219681

Company & Directors' Information:- K G PRODUCTS PRIVATE LIMITED [Active] CIN = U51909PB2007PTC031201

Company & Directors' Information:- K B SALES LTD [Active] CIN = U51109WB1993PLC058255

Company & Directors' Information:- J K SALES PRIVATE LIMITED [Active] CIN = U74899DL2001PTC109479

Company & Directors' Information:- D K Y SALES PRIVATE LIMITED [Active] CIN = U74899DL2002PTC117108

Company & Directors' Information:- S S P PRODUCTS PRIVATE LIMITED [Active] CIN = U22110WB1974PTC210201

Company & Directors' Information:- M L B PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1990PTC040990

Company & Directors' Information:- M M PRODUCTS LIMITED [Strike Off] CIN = U28994DL1992PLC050955

Company & Directors' Information:- K P R SALES PVT LTD [Active] CIN = U74899DL1983PTC016626

Company & Directors' Information:- M C SALES PRIVATE LIMITED [Active] CIN = U51909PB2007PTC031203

Company & Directors' Information:- A V M SALES PVT LTD [Active] CIN = U24112WB1990PTC048552

Company & Directors' Information:- M P K PRODUCTS PVT LTD [Active] CIN = U26919AS1994PTC004183

Company & Directors' Information:- P S SALES PRIVATE LIMITED [Active] CIN = U51432UP2002PTC026496

Company & Directors' Information:- G K PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1991PTC043260

Company & Directors' Information:- A M SALES PRIVATE LIMITED [Strike Off] CIN = U74899DL1989PTC034571

Company & Directors' Information:- N R PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51109AS1998PTC005561

Company & Directors' Information:- C L PRODUCTS INDIA LIMITED [Active] CIN = U51909DL2002PLC116975

Company & Directors' Information:- K. S. A. PRODUCTS PRIVATE LIMITED [Active] CIN = U51220PB2014PTC039023

Company & Directors' Information:- S N SALES PRIVATE LIMITED [Converted to LLP] CIN = U74899DL1995PTC071621

Company & Directors' Information:- G C SALES PVT LTD [Active] CIN = U51109HR1989PTC030575

Company & Directors' Information:- S S WIRE PRODUCTS PRIVATE LIMITED [Active] CIN = U00261JH1997PTC008126

Company & Directors' Information:- D. R. PRODUCTS PRIVATE LIMITED [Active] CIN = U52320DL2011PTC213508

Company & Directors' Information:- G. L. SALES PRIVATE LIMITED [Active] CIN = U51909DL2010PTC205078

Company & Directors' Information:- J P M SALES PRIVATE LIMITED [Strike Off] CIN = U52100TG2012PTC080686

Company & Directors' Information:- R S PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1989PTC036603

Company & Directors' Information:- R R PRODUCTS PRIVATE LIMITED [Active] CIN = U24249HR1999PTC034291

Company & Directors' Information:- S K INDIA WIRE PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U27104ML2002PTC006925

Company & Directors' Information:- I G PRODUCTS PRIVATE LIMITED [Active] CIN = U74999WB2012PTC183503

Company & Directors' Information:- S A WIRE & WIRE INDIA PRIVATE LIMITED [Strike Off] CIN = U51909TN2013PTC093566

Company & Directors' Information:- C R SALES PRIVATE LIMITED [Active] CIN = U51311HR1989PTC034949

Company & Directors' Information:- J S R PRODUCTS PRIVATE LIMITED [Active] CIN = U31908DL2007PTC170841

Company & Directors' Information:- C F C PRODUCTS PRIVATE LIMITED [Active] CIN = U28129DL1998PTC095531

Company & Directors' Information:- S B SALES PRIVATE LIMITED [Active] CIN = U74899DL1984PTC019075

Company & Directors' Information:- M S PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U74899DL1993PTC055125

Company & Directors' Information:- B R PRODUCTS PRIVATE LIMITED [Active] CIN = U31909DL1999PTC100727

Company & Directors' Information:- S P B PRODUCTS LIMITED [Active] CIN = U51909DL1996PLC082631

Company & Directors' Information:- G K D PRODUCTS PRIVATE LIMITED [Active] CIN = U15431WB1998PTC086840

Company & Directors' Information:- M B R PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U17111WB1993PTC060806

Company & Directors' Information:- ORISSA WIRE PRODUCTS P LTD [Active] CIN = U45201OR1964PTC000477

Company & Directors' Information:- S M G SALES PRIVATE LIMITED [Active] CIN = U52190DL1996PTC076099

Company & Directors' Information:- P D PRODUCTS PRIVATE LIMITED [Active] CIN = U23201DL2000PTC108462

Company & Directors' Information:- S K M PRODUCTS PRIVATE LIMITED [Active] CIN = U18101DL1998PTC093415

Company & Directors' Information:- H R PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U74899DL1978PTC009183

Company & Directors' Information:- WIRE INDIA PRIVATE LIMITED [Strike Off] CIN = U27201BR1988PTC002945

Company & Directors' Information:- G N INDIA SALES PRIVATE LIMITED [Active] CIN = U74999WB2012PTC180525

Company & Directors' Information:- G K WIRE PRODUCTS PRIVATE LTD [Active] CIN = U31300DL1984PTC017364

Company & Directors' Information:- V S PRODUCTS PRIVATE LIMITED [Active] CIN = U36900DL2008PTC185445

Company & Directors' Information:- H K PRODUCTS LIMITED [Active] CIN = U51900GJ2015PLC085457

Company & Directors' Information:- V. R. A. SALES PRIVATE LIMITED [Active] CIN = U74900UP2010PTC039548

Company & Directors' Information:- K K SALES PRIVATE LIMITED [Active] CIN = U20299UP1987PTC009147

Company & Directors' Information:- S R K PRODUCTS PRIVATE LIMITED [Active] CIN = U51221KA1989PTC010032

Company & Directors' Information:- G M PRODUCTS PRIVATE LIMITED [Active] CIN = U74899DL1991PTC044687

Company & Directors' Information:- V T N PRODUCTS PVT LTD [Active] CIN = U51109WB1996PTC080094

Company & Directors' Information:- P S I SALES PRIVATE LTD. [Active] CIN = U74899DL1986PTC022999

Company & Directors' Information:- J D SALES LIMITED [Strike Off] CIN = U51909MH1983PLC029644

Company & Directors' Information:- N D K SALES PRIVATE LIMITED [Active] CIN = U51101UP2009PTC037413

Company & Directors' Information:- W S T Q PRODUCTS PRIVATE LIMITED [Active] CIN = U31300DL1999PTC102655

Company & Directors' Information:- H P SALES COMPANY PRIVATE LIMITED [Active] CIN = U51495DL2004PTC128566

Company & Directors' Information:- J M K PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U24246OR2005PTC008446

Company & Directors' Information:- G S T PRODUCTS (INDIA) PRIVATE LIMITED [Strike Off] CIN = U31909TN2006PTC059575

Company & Directors' Information:- R. K. P. SALES PRIVATE LIMITED [Active] CIN = U52601UP2018PTC101743

Company & Directors' Information:- N R B SALES PVT. LTD. [Active] CIN = U51109WB1989PTC047356

Company & Directors' Information:- K N WIRE PVT LTD [Active] CIN = U27109WB2005PTC106788

Company & Directors' Information:- S M P PRODUCTS PRIVATE LIMITED [Active] CIN = U25200DL2009PTC190965

Company & Directors' Information:- U C SALES PRIVATE LIMITED [Active] CIN = U30007DL2004PTC127320

Company & Directors' Information:- S N S PRODUCTS PRIVATE LIMITED [Active] CIN = U15490DL2005PTC142749

Company & Directors' Information:- U B PRODUCTS PRIVATE LIMITED [Active] CIN = U51224DL2002PTC116457

Company & Directors' Information:- A AND A PRODUCTS PRIVATE LIMITED [Active] CIN = U21098MP2004PTC017128

Company & Directors' Information:- V J PRODUCTS PRIVATE LIMITED [Active] CIN = U36900GJ2011PTC065252

Company & Directors' Information:- A N WIRE PRIVATE LIMITED [Active] CIN = U28999HR2020PTC090373

Company & Directors' Information:- S AND A PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51311DL1991PTC042938

Company & Directors' Information:- S AND G PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51909DL1982PTC014843

Company & Directors' Information:- B P PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U24241WB1999PTC089499

Company & Directors' Information:- P K WIRE PRODUCTS P LTD. [Strike Off] CIN = U27204WB1992PTC056613

Company & Directors' Information:- D AND P PRODUCTS LIMITED [Amalgamated] CIN = U99999MH1951PTC008422

Company & Directors' Information:- S D H PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U55204KA2006PTC040734

Company & Directors' Information:- V M PRODUCTS PRIVATE LIMITED [Active] CIN = U24100DL2014PTC266679

Company & Directors' Information:- E C A PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U27209TN1987PTC014022

Company & Directors' Information:- M A K SALES PRIVATE LIMITED [Amalgamated] CIN = U26106UP2003PTC027989

Company & Directors' Information:- D. K. G. SALES PRIVATE LIMITED [Active] CIN = U51909DL2012PTC232444

Company & Directors' Information:- G AND G SALES INDIA PRIVATE LIMITED [Under Process of Striking Off] CIN = U52339KL2001PTC015071

Company & Directors' Information:- D S SALES PVT LTD [Active] CIN = U74899DL1981PTC011644

Company & Directors' Information:- S P M SALES PRIVATE LIMITED [Active] CIN = U51211DL1997PTC085322

Company & Directors' Information:- K S S SALES PRIVATE LIMITED [Active] CIN = U70200UP1999PTC024587

Company & Directors' Information:- S P C SALES PRIVATE LIMITED [Active] CIN = U51909DL2010PTC210237

Company & Directors' Information:- M M WIRE PRODUCTS PVT LTD. [Strike Off] CIN = U31300WB1989PTC046194

Company & Directors' Information:- T I & M SALES LTD [Not available for efiling] CIN = U51900WB1967PLC015415

Company & Directors' Information:- G S SALES PRIVATE LIMITED [Active] CIN = U74899DL1983PTC015481

Company & Directors' Information:- M B SALES INDIA PRIVATE LIMITED [Active] CIN = U74899DL1994PTC057259

Company & Directors' Information:- G B SALES PRIVATE LIMITED [Strike Off] CIN = U74900PN2013PTC149637

Company & Directors' Information:- M L G SALES PRIVATE LIMITED [Strike Off] CIN = U51909DL1996PTC075048

Company & Directors' Information:- K I A SALES PRIVATE LIMITED [Strike Off] CIN = U51909DL2003PTC122783

Company & Directors' Information:- M V SALES (INDIA) PRIVATE LIMITED [Active] CIN = U51909DL2008PTC184122

Company & Directors' Information:- R & Y SALES PRIVATE LIMITED [Strike Off] CIN = U74900DL1998PTC093675

Company & Directors' Information:- A S M SALES PRIVATE LIMITED [Strike Off] CIN = U45301UR2000PTC025735

Company & Directors' Information:- M J SALES PRIVATE LIMITED [Strike Off] CIN = U18101MH1988PTC049326

Company & Directors' Information:- G S PRODUCTS LIMITED [Strike Off] CIN = U25191UP1989PLC010483

Company & Directors' Information:- ORISSA CORPORATION PVT LTD [Dissolved] CIN = U15312OR1947PTC000123

Company & Directors' Information:- G M SALES PRIVATE LIMITED [Strike Off] CIN = U99999MH1994PTC076494

Company & Directors' Information:- S G SALES PVT LTD [Active] CIN = U51909TG1989PTC010567

Company & Directors' Information:- D K B SALES PRIVATE LIMITED [Strike Off] CIN = U51109WB2009PTC136057

Company & Directors' Information:- R. P. SALES PRIVATE LIMITED [Active] CIN = U16004UP1995PTC017800

Company & Directors' Information:- P M C SALES PRIVATE LIMITED [Strike Off] CIN = U74899DL1986PTC024459

Company & Directors' Information:- ORISSA WIRE PRODUCTS PVT LTD [Strike Off] CIN = U31300OR1964PTC000474

Company & Directors' Information:- M M SALES PRIVATE LIMITED [Strike Off] CIN = U52602OR1993PTC003255

Company & Directors' Information:- S S G M SALES (INDIA) PRIVATE LIMITED [Strike Off] CIN = U74900PN2014PTC151358

Company & Directors' Information:- A P SALES PRIVATE LIMITED [Strike Off] CIN = U74899DL1977PTC008819

Company & Directors' Information:- A R SALES PRIVATE LIMITED [Active] CIN = U51909DL2003PTC123142

Company & Directors' Information:- B M SALES PRIVATE LIMITED [Strike Off] CIN = U51909DL2004PTC127901

Company & Directors' Information:- WIRE-O-WIRE PRIVATE LIMITED [Strike Off] CIN = U27101UP1973PTC003827

Company & Directors' Information:- A R K PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U24231UP1978PTC004606

Company & Directors' Information:- S. M. PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U17299DL1966PTC004634

Company & Directors' Information:- U R SALES PRIVATE LIMITED [Active] CIN = U51909PB2010PTC034419

Company & Directors' Information:- S W C SALES PRIVATE LIMITED [Strike Off] CIN = U52599PB2005PTC028340

Company & Directors' Information:- U. G. SALES PRIVATE LIMITED [Strike Off] CIN = U51101MH2012PTC233364

Company & Directors' Information:- M I P SALES PRIVATE LIMITED [Strike Off] CIN = U51900MH1973PTC016482

Company & Directors' Information:- G V S SALES PRIVATE LIMITED [Active] CIN = U51900MH2004PTC149593

Company & Directors' Information:- R. M. R. PRODUCTS PRIVATE LIMITED [Active] CIN = U74999MH2017PTC298120

Company & Directors' Information:- K J SALES PRIVATE LIMITED [Strike Off] CIN = U74120MH2012PTC228743

Company & Directors' Information:- M G SALES PRIVATE LIMITED [Active] CIN = U74120UP2011PTC047801

Company & Directors' Information:- S F SALES PRIVATE LIMITED [Strike Off] CIN = U51101UP2011PTC044031

Company & Directors' Information:- S D T SALES PRIVATE LIMITED [Strike Off] CIN = U52390TG2012PTC080405

Company & Directors' Information:- D B S SALES PRIVATE LIMITED [Under Process of Striking Off] CIN = U74999UP2004PTC028747

Company & Directors' Information:- M & G WIRE PRIVATE LIMITED [Active] CIN = U28910DL2013PTC258272

Company & Directors' Information:- S M SALES PRIVATE LIMITED [Active] CIN = U51900DL1993PTC053285

Company & Directors' Information:- A N SALES PRIVATE LIMITED [Strike Off] CIN = U51909DL1997PTC091432

Company & Directors' Information:- A R V SALES PRIVATE LIMITED [Strike Off] CIN = U51909DL2005PTC138896

Company & Directors' Information:- P & Q PRODUCTS PRIVATE LIMITED [Strike Off] CIN = U51909DL2014PTC269162

Company & Directors' Information:- A. C. T. SALES PRIVATE LIMITED [Strike Off] CIN = U52100DL2008PTC172729

Company & Directors' Information:- S SALES PRIVATE LIMITED [Not available for efiling] CIN = U51909DL2021PTC376262

Company & Directors' Information:- V R SALES PRIVATE LIMITED [Strike Off] CIN = U51109KA1990PTC011491

Company & Directors' Information:- A J SALES PVT LTD [Strike Off] CIN = U51909CH1989PTC009863

Company & Directors' Information:- G M SALES PVT LTD [Strike Off] CIN = U51909CH1992PTC012260

Company & Directors' Information:- A TO Z SALES (P) LIMITED [Strike Off] CIN = U74900DL1996PTC082425

Company & Directors' Information:- H T PRODUCTS PVT LTD [Strike Off] CIN = U29266WB1981PTC033424

Company & Directors' Information:- J C SALES PRIVATE LIMITED [Strike Off] CIN = U51109DL1982PTC014805

Company & Directors' Information:- PRODUCTS (INDIA) LTD [Strike Off] CIN = U31901WB1961PLC024991

Company & Directors' Information:- M S SALES PRIVATE LIMITED [Strike Off] CIN = U74300UP1967PTC003153

Company & Directors' Information:- B R SALES COMPANY PRIVATE LIMITED [Strike Off] CIN = U34300DL1983PTC016125

Company & Directors' Information:- D V SALES PVT LTD [Strike Off] CIN = U51900MH1982PTC026068

Company & Directors' Information:- M PRODUCTS & CO PVT LTD [Strike Off] CIN = U51909WB1956PTC023215

Company & Directors' Information:- WIRE AND WIRE PRODUCTS LIMITED [Dissolved] CIN = U99999MH1941PTC003423

Company & Directors' Information:- SALES LIMITED [Dissolved] CIN = U99999MH1945PTC004578

Company & Directors' Information:- WIRE PRODUCTS LIMITED [Dissolved] CIN = U99999MH1955PLC009606

    STREV No. 28 of 2006

    Decided On, 20 April 2021

    At, High Court of Orissa

    By, THE HONOURABLE CHIEF JUSTICE DR. S. MURALIDHAR & THE HONOURABLE MR. JUSTICE B.P. ROUTRAY

    For the Petitioner: Jagabandhu Sahoo, Senior Advocate. For the Opposite Party: Sunil Mishra, Additional Standing Counsel.



Judgment Text

Dr. S. Muralidhar, CJ.1. This revision petition under Section 24(1) of the Sales Tax Act, 1947 (OST Act) arises from a judgment dated 20th December, 2005 passed by the Orissa Sales Tax Tribunal, Cuttack (Tribunal) dismissing the Petitioner's appeal i.e. S.A. No.523 of 2001-02 thereby affirming the order dated 17th April, 2001 of the Assistant Commissioner of Sales Tax, Puri Range, Bhubaneswar (ACST, Bhubaneswar) dismissing the Petitioner's first appeal i.e. Appeal No. AA. 175/BH.I of 2000-01. In turn the said order of the ACST, Bhubaneswar had affirmed the assessment order of the Sales Tax Officer, Bhubaneswar (STO) dated 30th January, 2001 enhancing the gross taxable turnover (GTT) by adding Rs.48,28,209.51 thereby resulting in a tax demand of Rs.1,95,829 under Section 12 (4) of the OST Act for the Assessment Year 1997-98.2. The questions of law that arise for determination in the present revision are as under:"(a) Whether in the facts and circumstances of the case, M.S. Wires and M.S. Rods are two different commercial commodities and the Tribunal is justified to hold that Petitioner is not entitled to exemption ?(b) Whether in the facts and circumstances of the case, the consequential addition of purchase value of M.S.Rod with the gross turnover and taxable turnover in assessment is sustainable in law?"3. The background facts are that the District Industries Center, Bhubaneswar (DIC) issued a certificate in favour of the Petitioner for eligibility for sales tax concession on raw materials, machinery, spare parts, packing materials and finished products under the Industrial Policy Resolution, 1996 (IPR, 1996) (New Units) for the special claim mentioned in column 2, what was the finished products (M.S. Wire, Wire Nails and L-Hook/J. Hook) whereas column 4 of the title "particulars of machinary, spare parts, raw materials and packing materials", listed out the following:"1. M.S. Rod in Coil2. Machinery spares like Dies, Nuts, Bolts, V. Balts, Ball, Bearing, Electrical spares etc. L.S.3. Packing materials like Gunny Bags/MDPE Bags worth L.S."4. It is stated that for the periods 1995-96 and 1996-97, the taxing authority granted the Petitioner exemption on the basis of the eligibility certificate. However, for the period 1997-98 the claim for exemption from payment of sales tax was disallowed by the STO. It was held by the STO that M.S. Rods from which the M.S. Wires was manufactured by the Petitioner was not a different commodity in respect of which an exemption could be claimed for the tax already paid on it. Thus, the STO determined that the tax leviable would be @ 4% on the GTT, and that the corresponding tax due would be rounded as Rs.1,95,829/-. In arriving to the above conclusion, the STO placed reliance on the judgment of the Supreme Court in Telengana Steel Industries v. State of Andhra Pradesh, (1994) 93 STC 187 (SC).5. Aggrieved by the above order, the Petitioner filed an appeal before the ACST, Bhubaneswar who again referred to the judgment of the Supreme Court in Telengana Steel Industries (supra) to justify the order of the STO. The aforementioned order was further affirmed by the Tribunal by dismissing the Petitioner's appeal S.A. No.523 of 2001-026. The plea of the Petitioner that a judgment of the larger Bench in K.A. K. Anwar and Co. v. State of Tamilnadu, (1998) 108 STC 258 (SC) had distinguished the judgment in Telengana Steel Industries (supra), was negative by the Tribunal on the ground that it did not to help the case of the Petitioner. Thereafter, the present revision petition was filed.7. This Court has heard the submission of Mr. Jagabandhu Sahoo, learned Senior Advocate for the Petitioner and Mr. Sunil Mishra, learned Additional Standing Counsel for the Opposite Party (Sales Tax).8. Mr. Sahoo at the outset submitted that it was not open to the sales tax authority to ignore the certification of the DIC as to the grant of exemption in respect of M.S. Wires produced from M.S. Rods. He pointed out that the Petitioner is a registered small scale industrial unit manufacturing M.S. Wires. The notification of the Finance Department dated 26th July, 1996 in terms of the IPR 1996 rendered the Petitioner eligible to avail sales tax exemption on the purchase of raw material, machinery, spare parts, packing materials and on sale of finished products 100% of the fixed capital investment made by it. This exemption was for a period of five years from the date of commencement of the commercial production. Relying on the decision in Vadilal Chemicals Ltd. v. State of Andhra Pradesh, [2005] 5 RC 295 he submitted that it could not be presumed that the DIC had wrongly granted the petitioner exemption from paying sales tax subject to satisfaction of the conditions of such certificate. Mr. Sahoo also relied on the decision in SREI International Finance Ltd. v. State of Orissa, [2008] 16 VST 193 (Orissa) where, in similar circumstances, it was held that in mere admission of the liability by the Assessee on a wrong presumption would not disentitle the Assessee to relief. He submitted that the decision in K.A. K. Anwar and Co. (supra) was wrongly distinguished by the Tribunal and that it squarely applied to the facts and circumstances of the case.9. On his part, Mr. Sunil Mishra, learned Additional Standing Counsel for the Opposite Party relying on the decision of the Supreme Court in Commissioner of Trade Tax, Uttar Pradesh v. S/S International Electrodes (2018) 17 SCC 302 contended that iron rods and iron wires are one and the same commodity and the extraction of wires from iron rods does not amount to manufacture. He relied on the decision of the Supreme Court in Collector of Central Excise v. Technoweld Industries, (2003) 11 SCC and submitted that obtaining of wire of thinner gauge from wire rod by cold drawing process did not amount to manufacture of a new product. Lastly, he relied on the decision in Telengana Steel Industries (supra) in support of his plea that the revision petition ought to be dismissed.10. The above submissions have been considered. Since considerable reliance has been placed by both sides on the decision in Telengana Steel Industries (supra) and the subsequent decision in K.A. K. Anwar and Co. (supra), the Court takes up the detailed examination of the said two decisions first.11. In Telengana Steel Industries (supra), a Bench of two learned Judges of the Supreme Court considered the question whether iron wires were separate commercial goods from wire rods from which they were produced and were therefore exigible to a single point tax even if the wire rods, when purchased had suffered sales tax. This was answered in the negative by holding that iron wires could not be considered to be a separate taxable commodity and, if wire rods which were purchased by the Petitioner had suffered sales tax, the same could not be realised from the sale of wires.12. It requires to be noticed that the Supreme Court in Telengana Steel Industries (supra) In Telengana Steel Industries (supra) observed that it did not propose to decide whether iron wires are separate commercial goods from iron rods from which they were produced, "by trying to answer whether they are one commercial commodity or separate." It noted that the question had arisen for consideration because the Court was concerned with a single point sales tax, which would not allow taxing the 'same commodity'. What according to the Supreme Court was the clinching factor in answering the question was that both were clubbed together in sub-item (xv) of Section 14 of the Central sales tax act, 1956 ('CST Act'). Accordingly the Supreme Court in In Telengana Steel Industries (supra) concluded that "iron wires cannot be taken as a separate taxable commodity, and, if wire rods which were purchased by the appellants had suffered sales tax, the same could not be realized from the sale of wires."13. Subsequently, a three judge Bench of the Supreme Court in K.A. K. Anwar and Co. (supra) addressed the question whether raw hides and skins were different from dressed hides and skins. It was held that although the appellants there had purchased raw hides and skins on payment of tax, 'it will be liable to payment of sales tax in respect of dressed hides and skins' and such levy will not fall foul of Section 15 of the CST Act as the two goods were different taxable commodities. It was held that it was a trite proposition that the same goods cannot be taxed more than once. In that process while discussing the decision in Telengana Steel Industries (supra) the Supreme Court in K.A. K. Anwar and Co. (supra) noticed the judgment of the Constitution Bench of Supreme Court Hajee Abdul Shukoor and Co. v. State of Madras [1964] 8 SCR 217, where the Constitution Bench of the Supreme Court held that "hides and skins in the untanned condition are undoubtedly different as articles of merchandise than tanned hides and skins". In para 13, the Supreme Court observed as under:"13. From the aforesaid observations it clearly follows that the Constitution Bench had, in no uncertain terms, come to the conclusion that raw hides and skins and dressed hides and skins were not one and the same commodity. Therefore, the first contention raised in the present case by the learned counsel for the appellant cannot be accepted notwithstanding the reliance by them on the aforesaid decision in the case of Telanganna Steel Industries case [1994] 93 STC 187 (SC) : (1994) Supp 2 SCC 259. It may here be noted that in none of these decisions was the attention of the learned Judges drawn to the aforesaid observations of the Constitution Bench in Hajee Abdul Shukoor's case [1964] 15 STC 719 (SC) :[1964] 8 SCR 217." (emphasis supplied)14. It was further observed by the Supreme Court in K.A. K. Anwar and Co. (supra) that Section 14 of the CST Act was not a taxing provision but merely classified different commodities under the same species under one entry. It was observed: 'merely because different goods or commodities are listed together in the same sub-heading or sub-items in Section 14 cannot mean that they are regarded as one and the same item."15. Therefore, it is clear that the subsequent decision of the three- Judge Bench of the Supreme Court in K.A. K. Anwar and Co. (supra) had to prevail over the earlier two Judge Bench decision in Telengana Steel Industries (supra).16. However, in the instant case, the Tribunal has sought to distinguish K.A.K. Anwar and Co. (supra) on a rather strange reasoning that "it was no way helpful to the dealer". This is no way to distinguish a binding judgment of the larger Bench of Supreme Court. Consequently, the Tribunal fell in error in proceeding to rely exclusively on the decision in Telengana Steel Industries (supra).17. Mr. Sahoo is right in contending that the sales tax authorities cannot ignore the DIC certificate issued in favour of the Petitioner expressly granting it exemption from payment of sales tax on M.S.Wires produced from M.S. Rods as raw material. The decision in Vadilal Chemicals Ltd. (supra) is instructive in this regard. In similar circumstances in that case, the Supreme Court disapproved the approach of the sales tax authorities seeking to override the exemption granted by the Department of Industries and Commerce. It was held that the Deputy Commissioner of Commercial Taxes (DCCT) "certainly could not assume that the exemption was wrongly granted nor did he have the jurisdiction under Section 20 of the State Act to go behind the eligibility certificate and embark upon a fresh enquiry with regard to the appellant's eligibility for the grant of the benefits. The counter affidavit filed by the respondents-sales tax authorities is telling. It is said that the Sales Tax Department had decided to cancel the eligibility certificates for sales tax incentives. As we have said the eligibility certificates were issued by the Department of Industries and Commerce and could not be cancelled by the Sales Tax Authorities. [See in this connection Apollo Tyres Ltd. v. CIT (2002) 9 SCC."18. It was then contended by Mr. Mishra, learned Additional Standing Counsel that once the period of exemption came to an end on 31st March, 2000, the Petitioner had itself been contending to the contrary and on the basis of the decision in in Telengana Steel Industries (supra) was seeking to avoid payment of tax on the finished product viz., M.S. Wires since it had already paid sales tax on M.S. rods.19. As rightly pointed out by Mr. Sahoo, learned Senior Counsel for the Petitioner, we are in the instant case concerned with AY 1997-98. The STO, the ACST and the Tribunal were called upon to answer the question whether for the said AY the Petitioner could avail the sales tax exemption on the strength of the DIC certificate and whether it fulfilled the conditions therein? The fact that in a subsequent year, from 1st April 2000 onwards, when such exemption was no longer available, the Petitioner took a different stand cannot deprive the Petitioner from getting exemption for AY 1997-98 in terms of the certificate of the DIC. The tax liability for each AY had to be decided on the law prevailing in that AY and if for such AY the Petitioner fulfilled the condition for getting tax exemption, then such benefit could not be denied to it. Indeed, this Court in SREI International Finance Ltd. (supra) observed thus:"Liability to pay tax has always to be imposed by law: it cannot be imposed on admission. Article 265 of the Constitution is very clear on this point."20. As far as the decisions cited by Mr. Mishra, learned Additional Standing Counsel are concerned, they would be relevant if the question was whether drawing of M.S. Wires from M.S. Rods amounts to manufacture. Here that is not the question. The only question is whether for the AY in question viz., 1997-98 the Petitioner's products i.e. M.S. Wires which is admittedly manufactured from M.S. Rods would be amenable to sales tax exemption in terms of the certificate dated 26th November, 1996 iss

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ued by the DIC, Bhubaneswar subject to fulfilling the conditions therein. The answer to that question, in our considered view, has to be in the affirmative.21. Consequently, the orders passed by the STO, the ACST and the Tribunal are accordingly set aside.22. The amount deposited by the Petitioner in this Court pursuant to the order dated 19th May, 2006 will be refunded to it in accordance with law not later than eight weeks from today.23. The questions of law framed are answered thus:(i) question (a) is answered in the negative by holding that the Tribunal is not justified in holding that the Petitioner was not entitled to exemption since M.S. Wires and M.S. Rods are different commodities.(ii) Consequently, question (b) is answered in the negative by holding that the consequential addition of the purchase value of M.S. Rods in the gross turnover and tax turnover of the Petitioner in the assessment order in question cannot be justified and is hereby set aside.24. The reference is accordingly decided in favour of the Petitioner Assessee and against the Opposite Party (Department).25. The revision petition is disposed of in the above terms.26. As the restrictions due to resurgence of COVID-19 situation are continuing, learned counsel for the parties may utilize a printout of the order available in the High Court's website, at par with certified copy, subject to attestation by the concerned advocate, in the manner prescribed vide Court's Notice No.4587, dated 25th March, 2020 as modified by Court's Notice No.4798, dated 15th April, 2021.
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