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Judgment
While admitting this revision petition on 28th September 2012, the following questions were framed for consideration by this Court:
“(i) Whether levy of entry tax under Section 26 of the Orissa Entry Tax Act is lawful and proper when the goods manufactured by the petitioner namely grill gates and window frames are not covered under the Schedule of the OET Act.
(ii) Whether deletion of levy of penalty imposed under Section 9C (5) of the OET Act by the first appellate authority is lawful and valid.”
Learned counsel for the Petitioner points out that in terms of Entry-3 in Part-I of the Schedule to the Orissa Entry Tax Act, 1999 (OET Act) “Iron and Steel as specified under Section 14 of the Central Sales Tax Act, 1956” is amenable to entry tax.
Admittedly, the Petitioner makes grill gates and window frames from M.S. rods and M.S. angles purchased by it after paying entry tax. The contention was that since grill gates and window frames are not specifically mentioned as such in the Schedule to the OET Act and they are not amenable to the entry tax.
However, when one examines the Section 14(iv)(iv) of the CST Act it talks of “steel bars (rounds, rods, squares, flats, octagons and hexagons, plain and ribbed or twisted, in coil form as well as straight lengths)” and further Clause (xv) speaks of “wire rods and wires-rolled, drawn, galvanized, aluminized, tinned or coated such as by copper”. Consequently, when Entry-3 in Part-I of the Schedule to the OET Act is read with the aforementioned clauses of Section 14 of the CST Act, it is plain that both the grill gates and the window frames manufactured by the Petitioner would be amenable to entry tax under the OET Act.
Consequently, the questions framed are answered in favour of the Department and against the Assessee.
The revision petition is dismissed.
An urgent certified copy of this order be issued as per rules.
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