Bombay High Court
THE COMMISSIONER OF SALES TAX, M.S., MUMBAIversusTATA IRON AND STEEL CO. LTD.
- Decided
- Disposal
- DISPOSED OFF
Holding
The reference was disposed of without answering the question of law due to the absence of a live issue.
Summary
The Maharashtra Sales Tax Tribunal referred a question of law to the Bombay High Court concerning whether the conversion of hot rolled steel to cold rolled steel, including thickness reduction, constitutes 'manufacture' under Section 2(17) of the Bombay Sales Tax Act, 1959. The Commissioner of Sales Tax (applicant) sought clarification, while Tata Iron and Steel Co. Ltd (respondent) argued that the tax liability had already been fully paid, leaving no live issue. Both parties' counsel reiterated that there was no remaining dispute for adjudication. The Court noted the submissions and the absence of a live controversy, and consequently declined to answer the substantive question. The reference was therefore disposed of, with the legal question left open for determination in any future appropriate proceeding.
Issues considered
- Whether the process of converting hot rolled sheet/strips/coils to cold rolled sheet/strips/coils, including thickness reduction, amounts to 'manufacture' within the meaning of Section 2(17) of the Bombay Sales Tax Act, 1959.
Legislation cited
- Bombay Sales Tax Act, 1959 — s. 2(17)
Subjects
- sales tax
- manufacture definition
- conversion process
- reference jurisdiction
- live issue
- Bombay Sales Tax Act
Judgment
Digitally signed
by MAYUR
MAYUR KONDIRAM
KONDIRAM ADANE
ADANE Date:
2026.08.19
18:29:01 +0530
14-STR-83-2010 (OS).DOC
Mayur
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
SALES TAX REFERENCE NO. 83 OF 2010
The Commissioner Of Sales … Applicant
Tax, M.S., Mumbai
Versus
Tata Iron And Steel Co. Ltd …Respondent
Ms. Jyoti Chavan, Addl. G.P, for the Applicant.
Mr. Samkit Shah, i/b Mulla and Mulla & Craigie Blunt and Caroe,
for the Respondent.
CORAM: SUMAN SHYAM &
ADVAIT M. SETHNA, JJ.
DATED: 18th AUGUST 2026.
PC:-
1. This sales tax reference arises out of the order dated 28th
March 2009 passed by the learned Maharashtra Sales Tax Tribunal,
Mumbai, in Reference Application No. 128 of 2008, whereby the
learned Tribunal has formulated a question of law and referred the
matter to this Court for answering the reference.
2. The question of law so formulated is as under :-
“Whether on the facts and circumstances of the case,
the Tribunal was justified in law in holding that the
‘process of conversion of hot rolled sheet/strips/coil
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14-STR-83-2010 (OS).DOC
to cold rolled sheet/strips/coils (inclusive that of
reducing thickness in the process of cold rolling); as
per requirement, does not amount to ‘manufacture’
within the meaning of the said Term as defined in
Section 2(17) of the Bombay Sales Tax Act, 1959.”
3. When the matter was called up, Mr. Samkit Shah, learned
counsel appearing for the Respondent, submitted that the
Respondent has already paid the entire amount to the Department
and, therefore, no live issue survives in the present proceedings. In
support of the above submission, Mr. Shah, learned counsel for the
Respondent, has produced a copy of the order in Appeal dated 4 th
March 2024, which is taken on record and marked “X” for
identification.
4. Ms. Chavan, learned counsel, also submits that there is no
live issue surviving for consideration in the present proceedings. As
such, the reference is returned unanswered. However, the question
of law framed by the learned Tribunal is kept open to be answered
in an appropriate proceeding in accordance with law.
5. Reference stands disposed of.
(ADVAIT M. SETHNA, J.) (SUMAN SHYAM, J.)
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