M/S. KALIDAS SHEET METAL INDUSTRIES P. LTD. versus STATE OF KERALA

Citation: [2008] 3 S.C.R. 610 · Decided: 28-02-2008 · Supreme Court of India · Bench: ASHOK BHAN · Disposal: Dismissed
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Judgment (excerpt)

[2008] 3 S.C.R. 610 
.-
A 
MIS. KALIDAS SHEET METAL INDUSTRIES P. LTD. 
v. 
STATE OF KERALA 
(Civil Appeal No. 2789 of 2002) 
B 
FEBRUAR'( 28, 2008 
, 
(ASHOK BHAN AND J.M. PANCHAL, JJ.) 
•• 
Kera/a General Sales Tax Act, 1963 - Schedule I Entry 
Nos. 116A and 1160 - Copper and Brass sheets -Tax levy-
c By treating them falling under the entries - Propriety of- Held: 
Tax rightly levied by treating them as items under the entries 
- The words 'Copper' and 'brass' occurring in the respective 
entries, would take within its sweep the 'sheets' thereof 
Appellant-Company was a dealer of Copper sheets 
D and Brass sheets. For the assessme11t years 1984-85 and 
1985-86, the Assessing Officer assessed the turnover of 
- .. 
the above-mentioned, at the rate of 8%, holding that the 
same were covered by Entry Nos.116A and 116D of the 
Schedule I to Kerala General Sales-Tax Act, 1963. It rejected 
E the plea of the assessee that the sheets were unclassified 
!terns and thus taxable at the rate of 5%. The order of 
assessing authority was upheld upto High Court. 
In appeal to this Court the common contention in 
F both the appeals, on the part of the appellants was that 
Entries 116A and 116D took within their sweep only virgin 
copper and brass in solid forms, but not in the form of 
sheet. 
Dismissing the appeals, the Court 
G 
HELD: 1.1 Copper Sheets and Brass Sheets in which 
the appellant deals would fall within the scope of Entries 
No. 116A and 116D liable to be taxed at the rate of 8% of 
the turnover. Entry 116A deals with copper whereas Entry 
H 
610 
M/S. KALIDAS SHEET METAL INDUSTRIES P. LTD. v. 
611 
... , 
STATE OF KERALA 
1160 deals with Brass. There is no manner of doubt that A 
Copper and Brass are metals. In ordinary temperature and 
pressure these metals occur in solid form. The fact that 
commercially, these metals are produced in rolling mills 
in the form of sheets, circles, ingots, strips or rods is not 
in dispute. It is also not in dispute that copper and brass B 
being metals in solid form, are available in the market in 
.. 
one of the above forms only. Therefore, it cannot be said 
that the words 'copper' and 'brass' occurring in Entry 116A 
and 1160 would not take within its sweep Copper Sheets 
and Brass Sheets. [Paras 9 and 6) [614-C, 0, E; 616-B] 
c 
1.2 The clarification made by the State Government 
in Government Order dated August 4, 1982 specifying that 
Copper, Brass and Zinc Sheets, circles, ingots, flats and 
rods were treated as unclassified items, related to the 
position prior to 01-04-84. This clarification was with D 
.. -· 
reference to Entry No. 121 which dealt with metallic . 
products and did not relate to Copper and Brass sheets. 
Schedule I to the Act was amended by Finance Act, 1984 
and along with other entries, Entries No. 11 SA and 1160 
were introduced with effect from 01-04-84 to bring in E 
metals like copper and brass. The clarification made by 
the Government would go to show that Copper and Brass 
Sheets, circles, ingots etc. are not Copper or Brass 
,.. 
products. If these items are not Copper or Brass products 
the same will have to be regarded as Copper and Brass 
F 
metals falling within the ambit of Entry No. 116A and 1160. 
[Para 7) [614-G; 615-AB] 
Hindustan Aluminium Corporation Ltd. v. State of Uttar 
Pradesh and Anr. (1981) 3 SCC 578 - distinguished 
State of M.B. vs. Hirala/ (1966) 2 SCR 752- referred to G 
..., 
CIVILAPPELLATE JURISDICTION: Civil Appeal No.2789 
of 2002. 
From the final Judgment and Order dated 12/12/2001 of 
1-1 
612 
SUPREME COURT REPORTS 
[2008] 3 S.C.R. 
..... 
A 
the High Court of Kerala at Ernakulam in T.R.C. No. 10/2001. 
WITH 
Civil Appeal No. 4158 of 2003. 
B 
T.L.V. Iyer, Subramonium Prasad, Jay Kishore Singh and 
Vivek Gupta for the Appellant. 
K. Radhakrishnan, P.V. Dinesh for the Respondent. 
.. 
• 
The Judgment of the Court was delivered by 
c 
J.M. PANCHAL, J. 1. These appeals are directed against 
Judgments rendered by High Court of Kerala at Ernakulam in 
Tax Revision Case No. 467 of 2000 and 10 of 2001 by which 
the view taken by the Assistant Commissioner (Assessment) 
Sales-Tax Office Cochin and confirmed by Additional Deputy-
D Commissioner (Appeals) 11, as well as The Kerala Sales-Tax 
Appellate Tribunal that the Copper Sheets and Brass Sheets in 
.. .. 
which the appellant deals fall within the ambit of Entries No. 
116A and 1160 which provide tax at the rate of 8% on the total 
turnover, of Copper and Brass respectiv
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