GUJARAT STEEL TUBES LTD. ETC. versus STATE OF KERALA & ORS.

Citation: [1989] 3 S.C.R. 210 · Decided: 05-05-1989 · Supreme Court of India · Bench: R.S. PATHAK · Disposal: Appeal(s) allowed
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Judgment (excerpt)

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GUJARAT STEEL TUBES LTD. ETC. 
v. 
STATE OF KERALA & ORS. 
MAY 5, 1989 
[R.S. PATHAK CJ., SABYASACHI MUKHARJI AND 
S. NATARAJAN, JJ.) 
y 
Central Sales Tax Act, 1956: Section 14(iv)(xi). 
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Steel pipe-Galvanisation of-Whether changes essential charac-
C ter of pipe-Galvanised iron pipes and tubes-Whether steel tubes. 
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Kera/a General Sales Tax Act, 1963: First Schedule-Entry 46. 
Galvanised iron pipes and tubes-Tax-levy of 
D 
The appellant company was manufacturing and selling black and 
galvanised steel tubes and pipes. In the assessment proceedings for the 
years 1982-83 nd 1983-84 under the Kerala General Sales Tax Act, 1963 
the appellant contended that since the galvanised pipes manufactured 
by it were "declared goods" they were not liable to additional sales tax 
as well as surcharge. Rejecting the contention, the assessing authority 
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taxed the turnover of galvanized iron pipes at four per cent and also 
assessed an additional tax and surcharge treating the galvanized iron 
pipes as 'goods' falling under Entry 46 of the First Schedule to the 
Kerala Sales Tax Act. Demands were raised from the Appellant 
company accordingly. 
F 
The Company filed a writ petition in the High Court. The High 
Court, held that as a result of the process of galvanisation the 
galvanised iron pipes had acquired different commercial identity and 
therefore, could not be identified with steel tubes mentioned in Section 
14(iv)(xi) of the Central Sales Tax Act. 
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In these appeals on the question: whether galvanised iron pipes 
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and tubes are a commercially different commodity from steel tubes 
mentioned in Section 14(iv)(xi) of the Central Sales Tax Act. 
Allowing the appeals and setting aside the judgment and order of 
the High Court, this Court, 
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GUJARAT STEEL TUBES v. STATE OF KERALA 
211 
HELD: I. Galvanised pipes are steel tubes within the meaning of 
Section 14(iv)(xi) of the Central Sales Tax Act. The view taken by the 
High Court to the contrary was erroneous. [213E] 
2. Galvanisation is done on steel tubes or pipes as a protective 
measure only, i.e., to make it weather-proof. Merely because the 
steel tube has been galvanised does not mean that it ceases to be a 
steel tube. It still remains a steel tube and neither its structure 
nor function is altered. Galvanisation does not bring a new commodity 
into existence and as a commercial item it is not different from a steel 
,_,A' 
tube. [212H, 213A-C] 
A 
B 
Commissioner of Sales Tax v. Mitra Industries, [1988] 69 S.T.C. 
C 
'r· · (Note No. 55 at p. 16) applied. 
•·. _..)-.. 
Associated Mechanical Industries v. Commissioner of Commer-
cial Taxes, Bangalore, [1986] 61 S.T.C. 225; Commissioner of 
Sales Tax v. Om Engineering Works, [1986] U.P.T.C. 55; State of 
Gujarat v. Shah Veljibhai Motichand Lunawada, [1969] 23 S.T.C. 288 
D 
and Sales Tax Commissioner and Ors. v. Jammu Iron and Steel Syndi· 
cate, [1980] 45 S.T.C. 99, approved. 
Apollo Tubes Limited v. State of Kera/a, [1986] 61 S.T.C. 275. 
overruled. 
Deputy Commissioner of Commercial Taxes, Tiruchirapalli v. 
P.C. Mohammed Ibrahim Marakayar Sons, [1980] 46 S.T.C. 22, Not 
approved. 
E 
). 
Deputy Commissioner of Sales Tax (Law) Board of Revenue v. 
G. S. Pai & Co., [I980J 1 S.C.R. 938, Distinguished. 
F 
CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 
2025-26, 2873-75, 1537 of 1986. 
From the Judgment and Order dated 24.3.86 and 20.3.86 of the 
Kerala High Court in O.P. No. 7621/85-I, 4411/85-Y, 2785/83-G, 
-.i-
9366/84-I and 4740/82-J respectively. 
Soli J. Sorabjee, Dr. Y.S. Chitale, T.S. Krishnamoorthy Iyer, 
Harish N. Salve, K.J. John, M.N. Jha, Mrs. A.K. Verma and D.Nc 
Misra for the Appellants. 
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212 
SUPREME COURT REPORTS 
[1989) 3 S.C.R. 
V.J. Francis, N.M. Popli and W.K. Jose for the Respondents. 
The Judgment of the Court was delivered by 
PATHAK, CJ. These appeals by certificate granted by the High 
Court of Kerala raise the question whether galvanised iron pipes and 
tubes are a commercially different. commodity from steel tubes 
mentioned ins. 14(iv)(xi) of the Central Sales Tax Act. 
The appellant is a company registered under the Companies Act, 
1956. It has its registered office at Ahmedabad in Gujarat. It is 
engaged in the manufacture and sale of steel tubes and pipes, both 
black and galvanised. 
In the assessment proceedigs for the assessment years 1982-83 
and 1983-84 under the Kerala General Sales Tax Act, 1963, the appel-
lant contended that the gal
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