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The Madhya Pradesh Reorganisation Act, 2000
Commissioner Of Sales-Tax, ... vs M/S. H.M. Esufall, H. M. Abdulali, ... on 18 April, 1973
War Profits Tax Commissioner, ... vs M/S. Rinodram Balchand Of Ujjain on 20 April, 1966

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Madhya Pradesh High Court
Commissioner Of Sales Tax vs Mandsaur Cement Pipe Factory on 7 September, 1982
Equivalent citations: 1983 54 STC 112 MP
Author: R Vijayvargiya
Bench: R Vijayvargiya, K Shukla



JUDGMENT
 

R.K. Vijayvargiya, J.

1. By this reference under Section 44(1) of the Madhya Pradesh General Sales Tax Act, 1958, the Board of Revenue, M.P., Gwalior, has referred the following question of law for the opinion of this Court.

Whether, under the facts and circumstances of the case, cement pipes are taxable under entry 56 of Part II of Schedule II appended to the Madhya Pradesh General Sales Tax Act, 1958, or otherwise ?

2. The facts giving rise to this reference as set out in the statement of the case are as follows :

The assessee, Mandsaur Cement Pipe Factory, Mandsaur, is the manufacturer of cement pipes and cement poles. For the assessment year 1968-69 the cement pipes sold by the assessee were taxed at 11 per cent. The assessee's objection was that the pipes manufactured and sold by it should not be taxed at 11 per cent because they were not sanitary fittings and were used for irrigation purposes. The Sales Tax Officer rejected the contention of the assessee. The first appeal preferred by the assessee was also unsuccessful. In the second appeal the Tribunal held that the cement pipes manufactured and sold by the assessee were used for irrigation purposes and were not sanitary goods and fittings. The Tribunal, therefore, held that the goods were liable to be taxed under entry No. 53 and not under entry No. 56 of Part II of Schedule II appended to the Madhya Pradesh General Sales Tax Act, 1958. At the instance of the department the Tribunal has referred the aforesaid question for the opinion of this Court.

3. The matter is concluded by the decision of a Division Bench of this Court in Commissioner of Sales Tax, Madhya Pradesh v. Truel Tubes (1981) 14 VKN 38. In the said case this Court held that:

The words 'all types of pipes and pipe fittings' in entry No. 56 must be construed as embracing pipes used for sanitary purposes. These words do not include conduit pipes, which are used for the purpose of casing of electrical wiring.

This case is followed by a Division Bench of this Court in Commissioner of Sales Tax, Madhya Pradesh v. M.P. Asbestos Cement & Pipe Co., Indore (1981) 14 VKN 382 and by another Division Bench of this Court in M.C.C. No. 94 of 1980 (Commissioner of Sales Tax v. Iisco Stanton Pipe and Foundry Co. Ltd., Ujjain [1982] 50 STC 207) decided on 3rd July, 1981. The Tribunal has recorded a finding that the cement pipes manufactured and sold by the assessee were not used for sanitary purposes but were used for purposes of irrigation. In the circumstances the Tribunal was fully justified in holding that the pipes in question were liable to be taxed under entry No. 53 and not under entry No. 56 of Part II of Schedule II appended to the Act.

4. For the reasons stated above our answer to the question referred to us is that under the facts and the circumstances of the case cement pipes are not taxable under entry No. 56 of Part II of Schedule II appended to the Madhya Pradesh General Sales Tax Act, 1958. The parties shall bear their own costs of this reference.