Judgment

R. S. PATHAK, J:- These appeals by special leave raise the question whether Aluminimum rolled products and extrusions can be described as "metal" for the purposes of the notifications dated December 1, 1973 and May 30, 1975 issued under the U. P. Sales Tax Act, 1948.

2. The appellant, the Hindustan Aluminium Corporation Limited, carries on the business of manufacturing and dealing in aluminium metal and various aluminium products.

3. On December 1, 1973, the State of Uttar Pradesh notified under S. 3-A (2) of the U. P. Sales Tax Act, 1948 that the turnover in respect of the following goods set forth in item No. 6 of the attached schedule would be liable to tax at all points of sale at 31/2% :-

"6. All kinds of minerals and ores and alloys except copper, tin, zinc, nickel or alloy of these metals only."

On May 30, 1975, the State of Uttar Pradesh published a notification, under Section 3-A (2 A) of the Act. in which item No. 1 of the schedule read as follows :-

"1. All kinds of minerals, ores, metals and alloys except those included in any other notification issued under the Act." and a rate of 2% was prescribed. The notification dated December 1, 1973 was amended and item No. 6 was deleted.

4. On August 14, 1975. the U. P. Legislature enacted the U. P. Sales Tax (Amendment and Validation) Act, 1975 Section 31 (7) of which, amended the aforesaid notification of May 30, 1975 retrospectively, so that it would be deemed always to have read as follows :-

"1. All kinds of minerals, ores, metals, and alloys including sheets and circles used in the manufacture of brass wares and scraps containing only any of the metals, copper, tin, zinc, or nickel except those included in any other notification issued under the Act."

5. On July 11, 1975, the appellant wrote to the Sales Tax Officer contending that the aluminium ingots, billets, rolled products, extrusions and other aluminium products manufactured and sold by it up to May 31, 1975 fell within item No. 6 of the notification dated December 1, 1973 and thereafter their sale was covered by item No. 1 of the notification dated May 30, 1975. However, the Commissioner of Sales Tax, U. P. issued a circular on October 15, 1975 to all Sales Tax Officers advising that aluminium ingots, only should be taxed as "metal". and in regard to other items such as rods, bars, rolled products, extrusion sections tax at the rate 7% would be payable as on unclassified items.

6. On December 30, 1975, the Sales Tax Officer made provisional assessments under Rule 41 (3), U. P. Sales Tax Rules. 1948 for the quarters ending June 30, 1975 and September 30, 1975. The Sales Tax Officer applied a rate of 31/2% under the Notification of December 1, 1973 to aluminium ingots only and treated the remaining products as unclassified items attracting sales tax at 7%. Similarly under the Notification of May 30, 1975 a rate of 2% was applied to the turnover of aluminium ingots while the remaining products were charged to tax at 7% as on unclassified items.

7. The appellant filed a writ petition in the Allahabad High Court against the provisional assessments. During the pendency of the writ petition, the Sales Tax Officer made a final assessment order for the assessment year 1975-76 on August 3. 1976. The writ petition was amended in the High Court and relief was now sought against the final assessment order. On November 17, 1976, the High Court passed judgment on the writ petition holding that while aluminium ingots wire bars and billets would fall in the category "metals and alloys, rolleed products prepared by rolling ingots and extrusions manufactured from billets must be regarded as different commercial commodities from the ingots and billets and therefore outside the category of "metals and alloys." The rolled products included plates, coils, sheets, circles and strips. The extrusions were manufactured in the shape of bars, rods structurals, tubes, angles, channels and different types of sections. In regard to properzi red