The main legal point established in the judgment is that GI pipes are considered as steel tubes and fall within the relevant sections of the KST and CST Acts. The directions issued by the Commissioner under section 3a of the KST Act were lawful and enforceable by the appellant on the principle of promissory estoppel.

( 1 ) THIS appeal is by the assessee and is directed against the order No. SMP 20/83-84 dated 16th january, 1984, of the Commissioner of Commercial Taxes, Karnataka, Bangalore ("commissioner"), made under section 22a of the Karnataka Sales Tax Act of 1957 ("kst act" ).

( 2 ) M/s. Associated Mechanical Industries, Belgaum, the assessee-appellant, a partnership firm of partners inter alia engaged in selling "gi" pipes is a registered dealer on the file of the Assistant commissioner of Commercial Taxes (Assessments), Belgaum (ACCT), under the KST Act and the Central Sales Tax Act of 1956 (CST Act ). The assessee generally purchases GI pipes from a manufacture called Gujarat Steel Tubes Limited, Ahmedabad (GST Ltd.), which has its sales office at Bangalore City. The GST Ltd. is also a registered dealer on the file of the Additional assistant Commissioner of Commercial Taxes (Assessment-I), Bangalore, under the KST Act and CST Act and on their sales to the assessee, it had paid sales tax due to the State of Karnataka under the KST Act.

( 3 ) FOR the assessment period from 1st July, 1977, to 30th June, 1978, or for the year 1977-78, the assessee filed its return before the ACCT inter alia disclosing sales turnover of GI pipes of Rs. 8,28,139. 60 with which only we are concerned claiming total exemption from payment of sales tax on the same, on the ground that they were "declared goods" which had suffered tax at the hands of GST Ltd. and as a second dealer it was not liable to pay sales tax on the said sales turnover under the KST Act. On 26th November, 1980, the ACCT completed the assessment for the said period and allowed the said exemption claimed by the assessee.

( 4 ) ON July 14/19, 1983, the Commissioner in exercise of the suo motu power of revision conferred on him by section 22a of the KST Act, issued a show cause notice to the assessee proposing to modify the aforesaid order of the ACCT and bring the exempted sales turnover of "gi pipes" to tax which was naturally opposed by the assessee in writing as also at the oral hearing afforded thereto under the Act. On 16th January, 1984, the Commissioner overruling the objections of the assessee has confirmed the show cause notice issued by him. Hence, this appeal by the assessee under section 24 (1) of the KST Act before us.

( 5 ) SRI B. P. Gandhi, the learned Advocate, who appeared in support of the appeal before us addressed his elaborate arguments. Sriyuths K. Srinivasan, G. Sarangan and E. R. Indra Kumar, learned Advocates appearing for the various petitioners, one of whom is GST Ltd. also intervened and ably supported Sri Gandh. Sri S. Rajendra Babu, learned Government Advocate appeared for the Commissioner-revenue. Both sides in their elaborate and exhaustive arguments extending for 3 days have relied on a large number of rulings and treatises in support of their respective cases and we will refer to them at the appropriate stages.

( 6 ) ON the contentions urged before us, the following three points arise for our determination and they are :

(1) Whether GI pipes fall under entry 2 (a) (xi) of the Fourth Schedule to the KST Act and section 14 (iv) (xi) of the CST Act, viz. , "steel tubes, both welded and seamless or all diameters and lengths, including tube fittings" or not ? (2) Whether letter No. 24/3/73-ST (P. T.) dated 20th November, 1973, written by Government of india (published on page 754 of the Central Sales Tax Act by Chaturvedi) to treat GI pipes as steel tubes was a direction to the authorities under the KST Act and if so was it binding on the latter ? (3) Whether there was a lawful direction by the Commissioner to treat "gi" pipes as "steel tubes"

under section 3a of the KST Act or not ? If so, has it been withdrawn and from what date : whether the same is enforceable by the assessee on the principle of promissory estoppel. We now proceed to examine them in their order. Re : Point No. 1.

( 7 ) SRI Gandhi has urged that GI pipes were "steel tube