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PETITIONER: SARU SMELTING (P) LTD.

       Vs.

RESPONDENT: COMMISSIONER OF SALES TAX, LUCKNOW

DATE OF JUDGMENT13/05/1993

BENCH: YOGESHWAR DAYAL (J) BENCH: YOGESHWAR DAYAL (J) KULDIP SINGH (J)

CITATION:  1993 SCR  (3) 719        1993 SCC  Supl.  (3)  97  JT 1993 (3)   416        1993 SCALE  (2)884

ACT: U.  P.  Sales Tax Act, 1948-Section 3A (2)  Second  Proviso- Notification under-Whether phosphorous bronze exigible to  a lower  rate  of tax-Held, ’only’ specified metals  or  their alloys  being  exigible at the lower rate,  it  cannot  fall within the entry if even very small quantity of it  contains and unspecified metal, in this case phosphorous.

HEADNOTE: By Notification No. ST-11-333/X-1012-1971 dated 15  November 1971,  entry  2(a) copper, tin, nickel, zinc  or  any  other alloy containing any of these metals only were made exigible at a reduced rate of sales tax of I The  Judge  (Revisions) Sales Tax, U.P., Lucknow  held  that phosphorous  bronze  falls within  this  notification.   The Single  Judge  of the Allahabad High Court took  a  contrary view  and  held  that  it was  taxable  as  an  unclassified commodity at 3.5%. Before  this court it was contended that phosphorous  bronze is  made  of tin and copper only; that a small  quantity  of phosphorous  is used to deoxidize the metal and that  it  is not  an essential substance of the phosphorous  bronze.   It was, however, admitted that without the use of  phosphorous, phosphorous  bronze  cannot  he  produced,  and  a   certain quantity remains in the phosphorous bronze. Dismissing the appeal, this Court, HELD: (1) The emphasis in the entry is that it must contain, even if an alloy, "only" copper, tin, nickel or zinc. The expression "only" is very material for understanding the meaning  of the entry.  Since the alloy in dispute  contains phosphorous, may he in a very small quantity, it cannot fall within entry 2(a) of the notification. (721 -G) Commissioner of Sales Tax v. Hindustan Metal Works (1964) 15 STC 97 720 referred to.

JUDGMENT: CIVIL  APPELLATE JURISDICTION: Civil Appeal No. 266 (NT)  of 1980.

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From  the Judgment and Order dt 14.12.1979 of the  Allahabad High Court in Sales Tax Rev.  No. 214 of 1979. Harish N. Salve, P.P. Singh and Ms. Meenakshi Grover for the Appellant. R.C.  Verma  and  Ms S. Mukherjee for  R.B.  Misra  for  the Respondent. The Judgment of the Court was delivered by YOGESHWAR  DAYAL,  J. This appeal is  directed  against  the judgment  of  the Single Judge of the Allahabad  High  Court passed  in  Sales Tax Revision No. 214 of  1979  dated  14th December, 1979.  By the impugned judgment the High Court set aside  the order of the Judge (Revisions), Sales  Tax,  U.P. Lucknow  holding  that  the  Phosphorous  Bronze  which  the assessee/appellant  herein  have  been  manufacturing,  fell within  the ambit of Notification No. ST-II-333/X-  10121971 dated  the  15th November, 1971 issued in  exercise  of  the powers  under  the  second proviso  to  sub-section  (2)  of section 3-A of the U.P. Sales Tax Act, 1948 (U.P. Act  No.XV of  1948),  and  took the view that the  relevant  entry  at serial  No. 2(a) of the said Notification did not cover  the goods  prepared by the appellant herein and was thus  liable to  be  taxed as an unclassified commodity at  the  rate  of 3.5%.The relevant entry reads as under:- ------------------------------------------------------------      SI. No.   Description of goods            Rate of tax ------------------------------------------------------------       1.....     ........      ......      .....      2....(a) Copper, tin, nickel or zinc      1 per cent.m            or any other alloy containing any of            these metals only.           (b).........        .......      ...... The   contention  on  behalf  of  the  appellant   is   that Phosphorous  Bronze  manufactured and marketed  by  them  is covered  under  the  aforesaid  entry.   According  to   the appellant  the  said Phosphorous Bronze is made of  tin  and copper  only.   It  is further contended on  behalf  of  the appellant that the small quantity of Phosphorous is used  to deoxidise the metal and as such the Phosphorous is not an  721 essential substance of Phosphorous Bronze.  It is,  however, admitted  case  of  the  parties that  without  the  use  of Phosphorous  the Phosphorous Bronze cannot be  produced  and certain  quantity  of  Phosphorous  still  remains  in   the Phosphorous Bronze. The contention of the respondent is that Phosphorous  Bronze is an alloy containing not only the metals mentioned in  the aforesaid  entry but Phosphorous also and as such it is  not covered  under the aforesaid entry.  The words "other  alloy containing  any  of these metals only" mean that  the  alloy made  of these metals i.e. copper, tin, nickel or zinc  only and  that  alone is covered under the said  entry.   It  was submitted  that if any other metal or substance is  included in  such an alloy, the same would not be covered  under  the aforesaid entry. A  similar  question arose in the case  of  Commissioner  of Sales Tax, U. P. v. Hindustan Metal Works, Hathras  reported in  (1964)  15  Sales Tax Cases 97 wherein it  was  held  as under:-               "The  Notification  exempts  tax  on  sale  of               alloys  prepared from the solution of  two  or               more  of  the metals enumerated  therein.   On               account  of  the word "only" the  sale  of  an               alloy  prepared  from the solution of  two  or               more of those metals and some other  substance               or  substances would not be exempt  from  tax.

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             The  assesse sold an alloy called  phosphorous               bronze which was prepared from the solution of               copper,    tin,    phosphorous    and    lead.               Phosphorous and lead are not mentioned in  the               notification.  They are deliberately added  by               the  assessee  as per  agreement  between  the               parties.  The sale is, therefore, prime  facie               liable to be taxed." We were referred to various dictionary meanings of the words Phosphorous  Bronze ’which have been noticed by the  learned Judge  dealing with case in the High Court.  We  are  really concerned  with  the  interpretation  of  the  entry.    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   expression  "only"  is  very   material   for understanding the meaning of the entry.  Since the alloy  in dispute  contains  Phosphorous,  may  be  in  a  very  small quantity, it cannot fall within entry 2(a) of the  aforesaid Notification.    The  appeal  consequently  fails   and   is dismissed with costs. U.R.                                    Appeal dismissed. 722