RAMAPRASADA RAO AND RAMANUJAM, JJ.

The point involved in these cases has arisen in a batch of cases which was posted for hearing along with these and the question that is raised for our decision is as to the validity of the levy of sales tax on iron flats, iron sheets and iron bars made out of iron scrap which has already been subjected to tax. We have heard the various counsel appearing for the petitioners in the entire batch of cases but we render our decision in the above two cases leaving the other cases to be disposed of later on the particular facts. Before dealing with the contentions of the assessee in these cases, it is necessary to set out the facts at least in one case and we propose to deal with the facts in Writ Petition No. 520 of 1968. The petitioners herein are carrying on business of re-rolling steel. They buy iron and steel scraps from other registered dealers and convert them into mild steel rounds, flats, angles etc., by rolling them. The concerned assessing authority by its order dated 25th January, 1968, proposed to assess the said petitioners under the Tamil Nadu General Sales Tax Act, 1959

Section 3 :

"Levy of taxes on sales or purchases of goods.

(1) Every dealer (other than a casual trader or agent of a non-resident dealer) whose total turnover for a year is not less than fifteen thousand rupees and every casual trader or agent of a non-resident dealer, whatever be his turnover for the year, shall pay a tax for each year at the rate of three per cent. of his taxable turnover .......

(2) Notwithstanding anything contained in sub-section (1) in the case of goods mentioned in the First Schedule, the tax under this Act shall be payable by a dealer, at the rate and only at the point specified therein on the turnover in each year relating to such goods whatever be the quantum of turnover in that year."

Section 4 :" Notwithstanding anything contained in section 3, the tax under this Act shall be payable by a dealer on the sale or purchase inside the State of declared goods at the rate and only at the point specified against each in the Second Schedule on the turnover in such goods in each year, whatever be the quantum of turnover in that year." *

Schedule I to the Act sets out the goods in respect of which single point tax is leviable under sub-section (2) of section 3 and Schedule II sets out a list of declared goods in respect of which single point tax only is leviable under section 4 of the local Act. Item 4 in Schedule II is as follows :

"Description of the goods Point of levy Rate of tax per cent. (1) (2) (3)

Iron and steel that is to say - At the point of first sale in the State. 3(a) pig iron and iron scrap;

(b) iron plates sold in the same form in which they are directly produced by the rolling mill;

(c) steel scrap, steel ingots, steel billets, steel bars and rods; and

(d) (i) steel plates;

(ii) steel sheets;

(iii) sheet bars and tin bars;

(iv) rolled steel sections; and

(v) tool alloy steel.

Items (i) to (v) sold in the same form in which they are directly produced by the rolling mill." *

Section 14 of the Central Act declares certain goods as being of special importance in inter-State trade or commerce and item (iv) therein is practically the same as has been set out under item 4 of Schedule II to the Act. As a matter of fact the entire Second Schedule is based on the list of goods mentioned in section 14. Section 15 imposes certain restrictions and conditions in regard to the levy of tax by the States on the sales of declared goods as enjoined by article 286(3) of the Constitution of India. It is useful to set out the said section 15 as it stood originally :

"15. Restrictions and conditions in regard to tax on sale or purchase of declared goods within a State. - Every sales tax law of a State shall, in so far as it imposes or authorises the imposition of a tax on the sale or purchase of declared goods, be subject to the following restrictions and conditions, namely :-

(a) the tax payable under that la