Industries Vs. Commissioner of Sales Tax  INSC 920 (7 August 1996)
S.P. (J) Bharucha S.P. (J) Majmudar S.B. (J)
1996 SCALE (5)756
O R D
order under appeal is of the High Court at Allahabad in revision petitions filed by the Commissioner of Sales Tax under the
U.P. Sales Tax Act. The question for consideration was whether brass wire
manufactured by the assessee was classifiable as 'brassware' as claimed by the
Revenue or under a notification dated 6.10.1971 issued under sub-section (2) of
Section 3-A which mentioned "copper, tin, nickel or zinc, or any other
alloy containing any of these metals".
High Court rightly proceeded upon the basis that the brass wire manufactured by
the assessee was an alloy of copper and zinc. It, however, rejected the
argument that, as such, it was covered under the aforementioned entry in the
notification. It emphasized the words 'any of these metals' in the entry and
observed that if an alloy consisted of more than one of the metals mentioned in
the entry, it would not be covered by it. An alloy, in its view, with copper or
tin or nickel or zinc would be covered by the entry, but an alloy comprising
more than one of these metals was beyond its scope. The High Court also relied
upon the subsequent entry in the notification and observed that the use of the
word 'all' in that entry and its omission in the relevant entry indicated that
the intention was to confine the lower rate of tax only to those alloys which
comprised only one of the metals named.
plain reading of the entry, we find it difficult to agree. Brass is an alloy.
It contains copper and zinc.
therefore, contains a metal mentioned in the entry. The entry applies to an
alloy containing any of these metals. It applies, therefore, to brass. It is of
no consequence that the alloy (brass) contains more than one of the metals
mentioned in the entry.
conclusion that we have reached is fortified by the judgment of this Court in
M/s Saru Smelting (P) Ltd., vs. Commissioner of Sales Tax, Lucknow, 1993 Supp.
(3) SCC 97, where the entry was very similar, namely, 'copper, tin, nickel or
any other alloy containing any of these metals only". The Court said:-
"The emphasis in the entry is -- either it should be pure copper, tin,
nickel or zinc and if it is an alloy containing two or more metals, it must be
an alloy containing these metals only".
the alloy in question before the Court there contained phosphorous, which was
not one of the metals mentioned in the entry, the alloy was held to fall
outside the entry.
wire, therefore, falls within the entry in the said notification.
appeals are allowed. The judgment under appeal is set aside. The revision
petitions filed before the High Court are dismissed.
shall be on order as to costs.
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