R.L. Gulati, J.@mdashu/s 11(1), U.P. Sales Tax Act, the Additional Judge (Revisions) Sales Tax, Agra, has submitted the statement of the case
and has invited the opinion of this court on the following question of law :-
Whether the steel doors are hardwares taxable at 3 per cent. or building materials taxable at 2 per cent. ?
2. The assessee manufactures and sells steel almirahs and steel doors. The dispute relates to the turnover of steed doors in respect of the
assessment year 1963-64. The department assessed his turnover at the rate of 3 per cent. treating it to be an article of hardware, whereas the
assessee contended that the out-turn should have been assessed at 2 per cent. as building material u/s 3 of the Act. In S.T.R. No. 576 of 1968*
decided on the 13th November, 1969, a Division Bench of this court, while dealing with a similar question relating to steel trunk, has pointed out
the distinction between the hardware industry and the iron and steel industry as is understood in the commercial community. Following that
judgment we are of the opinion that the steel doors will not be covered by the term hardware. They would be an unclassified commodity and may
be described as building material. Therefore the turnover of steel doors would be taxable u/s 3 and not at 3 per cent. as classified item. We
accordingly answer the question by saying steel doors are not hardwares and as such will be taxable at 2 per cent. as unclassified item or as
building material but not at 3 per cent. as an item of hardware. As no one has appeared on behalf of the assessee, we make no order as to costs.
The fee of the learned counsel for the department is assessed at Rs. 100.
*Since reported as Commissioner of Sales Tax, U. P. v. Aftab Husain Imdad Husain [1970] 25 S.T.C. 471.