State of A.P. vs Prakash Industries

S.V. Maruthi, J.—The issue involved in this tax revision case is whether the cast iron castings fall under entry 2 of the Third Schedule and therefore not liable to pay tax once again when they are manufactured from pig iron and cast iron scrap. Entry 2(1) of the Third Schedule reads as pig iron and cast iron including ingot, moulds, bottom plates. If cast iron castings fall under this entry and manufactured from the raw material falling under this entry this cast iron castings are not liable to be taxed once again. In this context the clarification issued by the Government of Andhra Pradesh is relevant. The Government of Andhra Pradesh by G.O. Ms. No. 383, Revenue, dated April 17, 1985 clarified that cast iron castings are covered within the term cast iron. Though the cast iron castings are manufactured from pig iron and scrap since it is clarified that cast iron castings fall under item cast iron and since the raw material has already suffered tax the cast iron castings are not liable to be taxed once again as they fall under the same entry of the Third Schedule.

In view of the above, we agree with the Tribunal and dismiss the tax revision case. No costs.