Holding

The expression "cast iron" in Item 2(i) of the Third Schedule does not include cast‑iron castings, and the Government’s clarifications under Section 42(2) cannot override the statutory levy.

Summary

Bengal Iron Corporation, a manufacturer of cast‑iron pipes, man‑hole covers and similar items, claimed that its products fell under Item 2(i) of the Third Schedule of the Andhra Pradesh General Sales Tax Act, 1957, and were therefore liable to a single point tax of 4% only. The Commercial Tax Officer levied tax at the general rate, the High Court rejected the claim, and the corporation appealed to the Supreme Court. The Court examined whether the term "cast iron" in the Schedule includes "cast iron castings" and whether the Government’s clarificatory orders (including G.O. No. 383 issued under Section 42(2)) are binding on tax authorities. Relying on dictionary definitions and the distinction between "cast iron" and "cast‑iron castings", the Court held that the Schedule’s expression does not cover the appellant’s products and that executive circulars cannot override statutory provisions. Consequently, the appeal was dismissed.

Issues considered

Whether sub‑item (i) of Item 2 of the Third Schedule of the Andhra Pradesh General Sales Tax Act, 1957 includes cast‑iron castings such as pipes and man‑hole covers.
Whether the Government’s clarificatory orders and circulars issued under Section 42(2) are binding on the quasi‑judicial functioning of tax authorities.
Whether Section 42(2) can be used to dispense with the levy created by the Act for a class of goods.

Legislation cited

Andhra Pradesh General Sales Tax Act, 1957s. 42(1), s. 42(2), s. 6
Central Sales Tax Act, 1956s. 14(iv)(i), s. 15
Payment of Bonus Act

Subjects

sales taxdeclared goodscast ironstatutory interpretationexecutive circularsSection 42tax exemptionAndhra PradeshCentral Sales Tax Act

Judgment

BENGAL IRON CORPORATION AND ANR. A
v.

COMMERCIAL TAX OFFIC£R AND ORS.

APRIL 27, 1993
B
[B.P.JEEVANREDDYANDN. VENKATACHALA,JJ.]

Andhra Pradesh General Sales Tax Act, 1957:
Sub item (i) ofItem No. 2 ofthe Third Schedule-Whether includes cast iron
castings.
c
Interpretative circulars issued by Gove mmemon statutOf)' provisions-1.egal
effect of if in derogation of the provisions of the Act.
Section 6 Qf..Andhra Pradesh General Sales Tax Act, 1957 provides a
single poiot iax @ 4 % ~n declared goods, mentioned in the Third Schedule to
that Act. Item (2) of the Third Schedule describes the articles made oflron &
D
steel which fall in the category of 'declared goods'; sub-item (i) of Item (2)
pertains to "pig iron and cast iron including ingot moulds, bottom plates, iron
scrap, cast iron scrap, runner scrap and iron skill scrap". 'Cast iron' is
defined in the Concise Oxford Dictionary as "a hard alloy ofiron, carbon and
silicon cast in a mould". On February 28, 1977 the Department of Revenue &
Banking (Revenue Wing) Government orfndia issued a letter to all Finance/ E
Revenue Secretaries of all State Governments and Union Territories, ex-
plaining the term 'Castifon' mentioned in sectioq,14 (iv) (i) of the Central
Sales Tax Act 1956. This letter said to have been issued in consultation with
the Directorate General of Techinical Development,__ Chi~fChemist and the
Ministry of Law, Justice & Company Affairs; extended the scope of the
expression 'cast iron' to "cover 'cast iron casting' also". F

Based on similar clarifications, the Department of Revenue (S) Depart-
ment of the Government of Andhra Pra~esh issued a clariticatory order
under s. 42(2) of the Act vide GOMs No. 383 dated April 17, 1985 extending
the scope of the expression 'cast iron' to include "cast iron castings". This
order was also publis~e~ in the State's official Gazette. Section 42 (2) of A.P. G
General Sales Tax Act empowers the State Gove.rnment to make, by an order,
such provisions as appear to them necessary~ expedient to remove difficulty
in the implementation of this Act, provided that these are not inconsistent with
the provisions of the Act.

The appellant manufactures and sells products like cast iron pipes, man- H

433
434 SUPREME COURT REPORTS [1993) 3 S.C.R.

A hole covers, etc. He claims that read with the above clarificatory orders, he is
liable to pay only 4% sales Tax under Section 6 of the A.P. General Sales Tax
Act. But, for the assessment year 1989-90 the Commercial Tax Officer
(C.T.O.) Nar3yanaguda Circle, Hyderabad levied Sales...,l~x on the said
products at the rate applicable to general goods. The C.T .0. having overruled
. the appellant's contentions, the. latter appealed to the Appellate Deputy
B Commissioner. During the pendency of appeal a notice was issued to the
appellant calling upon him to pay the tax assessed, since no stay has been
granted in appeal. Against this notice the appellant fded a writ petition No.
9315 of 1992 !n the High Court of Andhra Pradesh. The Division Bench of the
High Court rejected the appellant's main contention that his products were
C covered by Item (2) (i)oftheThirdScheduletotheA.P. General Sales Tax Act,
and dismissed the writ petition. Vide Civil Appeal No. 4474of1992 (with Writ
Petition(Civil) No. 763 of1992). The appellant questions before this Court the
above view of the High Court.

Rejecting the appellant's contentiom and upholding the judgment and
D order of the High Court, this Court,

HELD: Law is what is declared by this Court and the HighCourt. An
executive authority can, at best, only opine its own understanding of the
statute; such opinion is not binding upon the quasi-judicial functioning of the
E authorities under the Act. (444-B)

Sanjeev_ Coke Manufacturing Company v. Mis Bharat Cooking Coal lid.
and another, AIR 1983 SC 239, referred to.

The Government cannot use the powers, conferred by section 42 (2) of
F the A.P. General Sales Tax Act, to dispense with a levy created by the Act.
(444D)

The Van Nostrand's Scientific Encyclopaedia treats 'cast iron' 'and
'cast-iron' (with a hyphen) as two different words. The Act speaks of 'cast
iron' (that is without a hyphen between the two words) (437-G-H)
G
Hence, the expression 'cast iron' in Item (2) (i) of A.P. General Sales Tax
Act does notinclude the products cast- iron pipes, man-hole covers, bends etc.
(437-F)

Deccan Engineers v. Scace of Andhra Pradeslt, 1991 Vo.12 A.P. Sales Tax
H Joumal 138, refemxl to.
BENGAL IRON CORPN. v. COMMERCIAL TAX OFFICER [B.P. JEEWAN REDDY,J.] 435

<:;:NIL APPELLATE JURISDICTION: Civil Appeal No. 4474of1992. A

From the Judgment and order dated 28.7.1992 of the Andhra Pradesh High
Court in W.P. No. 9315of1992.

WITH
B
WRIT PETITION (CNIL) NO. 763 OF 1992.

(Under Article 32 of the Consitution of India)

A.K. Ganguli, Rakesh K. Khanna for R.P. Singh for the Appellant/
Petitioners.
c
• C. Sitaramiah, Ms. Pushpa Reddy and Mrs. T. V.S. Narasimhachari for the
Respondents.

The Judgment of the Court was delivered by

B.P. JEEVAN REDDY. J. CNILAPPEALNO. 4474 OF 1992.
D
The appellant is engaged in the manufacture and sale of products like cast-
iron pipes, man-hole covers, bends etc. For the assessment year 1989-90, the
Commercial Tax Officer, Narayanguda Circle, Hyderabad levied sales tax upon
the turn-over relating to said products treating them ~ general goods. He over-
ruled the petitioner's contention that the said products are declared goods liable to
tax at the rate of 4% only. The assessees' appeal preferred before the Appellate E
Deputy Corrunissioner is still pending. Evidently because no stay was granted
pending the said appeal, a notice was issued to the appellant calling upon him to
pay the tax assessed, against which notice he preferred a writ petition, being W.P.
No. 9315 of 1992, in the High Court of Andhra Pradesh. His main contention in
the writ petition was that by virtue of G.0.Ms. No. 383 Revenue (S) Department
dated 17.4.1985, his products are 'declared goods' and are, therefore, liable to tax F
only @4%.

The Division Bench of the High Court dismissed the writ petition following
its earlier dicision in Deccan Engineers v. State of Andhra Pradesh (reported in
1991, Vol. 12 A.P. Sales Tax Generals, 138: 84 STC 92). In Deccan Engineers, G
it was held by the A.P. High Court that the expression 'cast iron' in item (2) (i) of
the Third Schedule to the Andhra Pradesh General Sales Tax Act does not include
casHron pipes, man-hole covers and bends etc. In this appeal, the correctness of
the said view is questioned.

Third Schedule to the Andhra Pradesh General Sales Tax Act pertains to H
436 SUPREME COURT REPORTS [1993] 3 S.C.R.

A "declared goods in respect of which a single point tax only is leviable under section
6". Section 6 was enacted by the A.P. Legislature to accord with sections 14 and
15 of the Central Selas Tax Act. Item(2) of the Third Schedule to theA.P. Act reads
as follows:

B THIRD SCHEDULE
(As amended upto 15th August 1987)

Declared goods in respect of which a single point tax only is leviable under
Section 6. ·

c S.No. Description of goods Points of levy Rate of tax
(1) (2) (3) (4)
(1) ................... ~..
(2) Iron and steel, that is -do- *4-do-
to say; -(3002)
(i) pig iron and cast iron including
D
ingot moulds, bottom plates, iron
scrap, cast iron scrap, runner scrap
and iron skill scrap;
(ii) steel semis (ingots, slabs, blooms and
billets of all qualities, shapes and sizes);
E (iii) skelp bars, tin bars; sheet bars, hoe-bars
and sleeper bars;
(iv) steel bars (rounds, rods, squares,

-
flats, octagons and hexagons; plain and
ribbed or twisted; in coil form as well
as straight length);
F (v) steel structurals (angles, joints,
channels, tees, sheet pilling s~tions.
Z sections or any other rolled sections);
(vi) sheets, hoops, strips and skelp, both black
and galvanised, hot and cold rolled,
plain and corrugated in all qualities, in
G
straight lengths and in coil form, as
rolled and in revitted condition;
(vii) plates both plain and chequered in all qualities;
(viii)discs, rings, forgings and steel castings;
(ix) tool, alloy and special steels of any
H of the above categories;
BENGAL IRON CORPN. v. COMMERCIAL TAX OFFICER [B.P. JEEWAN REDDY,J.) 437

(x) steel melting scrap in all forms including A
steel skull, turnings and borings;
(xi) steel tubes, both welded and seamless, ·
of all diameters and lengths,
including tube fittings;
(xii) tin-plates, both not dipped and electrolytic
and tin free plates; B
(xiii)fish plate bars, bearing plate bars,
crossing sleeper bars, fish plates, bearing
plates, crossing sleepers and pressed
steel sleepers, rails-heavy and light crane rails;
(xiv)wheels, tyres, ailes and wheel sets; c
(xv) wire rods and wires rolled, drawn,
galvanised, aluminised, tinned or
coated such as by copper;
(xvi)defectives, rejects, cuttings or end
pieces of any of the above categories.
D
Item (2) of the Third Schedule to the A.P. Act is an exact replica ofitem (iv)
of section 14 of the Central Sales Tax Act. According to section 15 of the Central
Act, 'declared goods' cannot be taxed at a rate exceeding 4% or at more than one
stage.
E
The pracise question that was considered in Deccan Engineering (followed
in the judgment under appeal) was whether the 'cast iron castings' manufactured
by the petitioner in that case are 'cast iron' within the meaning ofitem(2) (ij of the
Third Schedule to the A.P. Act/ltem(iv) (i) of section 14 of the C.S.T. Act. At this
stage, it is necessary to acertain precisely what does 'cast iron' mean and how are
the products of the appellant manufactured. 'Cast iron' is defined in the Concise F
Oxford Dictionary as "a hard alloy of iron, carbon and silicon cast in a mould''.
According to New Lexicon Webster's dictionary of English language, the word
'cast iron' means "an iron-carbon alloy produced in a blast furnace. It contains
upto4% carbon, and is more brittle, but more easily fused, than steel." According
to Van Nostrand's Scientific encyclopedia, 'cast iron' is "primarily the produc~ of
remelting and casting pig iron". (Interestingly, the expression 'cast-iron'-with a G
hyphen between 'cast' and 'iron' -has been defined separately as meariing "made
of cast iron". So far as item (iv) of section 14 is concerned, the official publication
spells the expression cast iron' without a hyphen. Though an authorised publica-
tion of the A.P. Act is not placed before us, we presume that the printing of the said
expression in the private publication placed before us represents the correct
ff
rendering - it is without a hyphen.) That 'cast iron' is different from 'cast iron

i
438 SUPREME COURT REPORTS [1993] 3 S.C.R.

A castings' is brought out in the following extract from the Judgment in 'Deccan
Engineering', which is equally true in the case of the appellant as well:

"The assessee manufacturers and sells various goods mentioned
earlier made from cast iron which has suffered sales tax. The
controversy is whether these several goods sold by the petitioners
B continue to be the same declared goods covered by the aforesaid
entry or are different commercial commodity liable to levy of State
Sales Tax. The case of the Revenue is that, items sold by the
petitioner are, therefore, exigible to tax as a distinct commercial
commodity. It is contended by the learned counsel for the assessee
c that the relevant entry in section 14 of the Central Act also Hird
Schedule of the State Act speak of cast iron including ingots,
moulds and bottom plates, iron scrap etc. which indicates that any
casting made out of cast iron also should be treated as included in
the entry because of the word used 'including' in the entry. It is
further contended that the Government of India in their letters have
D clarified that cast iron castings are covered by cast iron and the State
Government has also issued the aforesaid G.O. subsequently under ·
Section 42(2) of the State Act clarifying that the cast iron castings
are covered within the term cast-iron."

E It is thus clear that 'cast iron' is different from 'cast iron castings' manufac-
tured by the appellant. 'Cast iron' is purchased by the appellant and from that ·cast
iron·, he manufactures several goods, like manhole covers, bends, cast iron pipes.
etc. In other words, 'cast iron· used in item (iv) of section 14 of the Central Act is
the material out of which the petitioner's products are manufactured. Position
remains the same, even if the appellant purchases iron and mixes it with carbon and
-F silicon thereby deriving 'cast iron' and then pours it into different moulds. In sum,
'cast iron' is different from the cast iron pipes, manhole covers, bends etc,
manufactured and sold by the appellant. It cannot be denied, in such a situation that
the products manufactured by the appellant are, in commercial parlance, different
and distinct goods from the cast iron. Indeed this aspect is not seriously disputed
by Shri Ganguli, the learned counsel for the appellant. His case is entirely based
G upon certain clarifications and circulars issued both by the Central and State
Governments and in particular upon an order issued by the Andhra Pradesh
Government under section 42(2) of the A.P. Act namely viz., G.O. Ms. No. 383.
dated 17 .4.1985. It is, therefore, necessary to refer to them.

The earliest clarification is the one contained in the latter dated 28th
H February, 1977 from the Department of Revenue and Banking (Revenue Wing)
BENGAL IRON CORPN. v. COMMERCIAL TAX OFFICER [B.P. JEEWAN REDDY,J.] 439

Government of India addressed to the Finance/Revenue Secretaries of all State A
Govern·ments and Union Tarritories. It reads thus:

"Subject: Clarification as to whether the term 'Cast Iron' mentioned
in section 14(iv) (i) of the Central Sales Tax Act, 1956
would cover cast Iron casting.
B
'
In continuation of the marginally noted communications and
with refere.nce to this Department's letter No. 24/3n3-ST. dt.
20.11.1973, I am directed to say that the question whether the
expression 'cast iron' used in Section (iv) (i) of the Central Sales
Tax.Act, 1956 will include 'Cast iron casting' has been re-examined
in consultation with the Directorate General of Technical Develop- c
ment, Chief Chemist a~q the Ministry of Law, Justice & Company
Affairs. This Department has been advised that the existing expres-
sion 'cast iron' in the aforesaid section will cover 'cast iron casting·
also.
Yours faithfully, D

Sd/-

Deputy Secretacy.,to the
'.
Govt. ofIndia."
E
Pursuant to the above clarification by the Central Government, the Commis-
sioner of Commercial Taxes, Government of Andhra Pradesh intimated all the
Deputy commissioners of commercial Taxes of the State that "Cast Iron Pipes and
specials should be subjected to tax as falling under "Cast Iron" liable to tax @4%
at the point offirst sale in the State under entry 2 of the III Schedule of A.P.G.S.T.
Act." To the same effect is another clarification issued by the Commissioner of F
Commiercial Taxes, Government of Andhra Pradesh to his subordinate officials
on 12.3.1982.
The next clarification from the Government of India was on 31st January,
1984. It appears that the Government of Haryana had written to the Central
Government. stating that 'cast iron castings' cannot be treated as declared goods G
and requested the Ministry of Finance, Government of India to examine the same.
It was in reply to the said query that the letterdated3 lstJanuary, 1984 was written
by the Government of India, Ministry of Finance, Department of Revenue to the
Financial Commissioner and Secretary, Government of Haryana, Excise and
Taxation Department. The letter says that the matter has been considered carefully
by the Department in consultation with the Ministry of Law and the Director H
440 SUPREME COURT REPORTS (1993] 3 S.C.R.

A General of Techinical Development. It set out the opinion of the Minis~ of Law
as also the opinion of the Director General ofTechinical Development. The latter's.
opinion reads:

"Cast iron is an alloy iron of Carbon silicon and other alloying
elements if required i.e. Cast Iron Castings are covered under the
B
term 'Cast Iron'. It may also be clarified that 'cast Iron' include Gray
Iron, Chilled Malleable and Nodular Iron. Ingot Moulds and Bottom
Plates are nothing but Cast Iron Castings".

After setting out the said two opinions, the Government of India expressed
C its opinion in the following words:

"In.accordance with the above advice.cast iron castings are covered
under the term "Cast Iron" .................... State Government may
kindly bring this position to the notice of Sales Tax authorities of the
State. If considered necessary this may be placed before the Com-
D mittee of Commissioners of Sales Tax Commercial Tax set up under ·
this Ministry's letter No. Receipt of this letter may please be
acknowledged.".

Copies of this letter were communicated to all the State Gov~rnments and
E Administrations of Union Territories.

On 20th July, 1984 the Government of Andhra Pradesh, Revenue (S)
Department issued a memorandum, referring to the aforesaid letter of the Central
Government dated 31st January, 1984 and reaffirming that "'Cast Iron Castings'
are covered within the item 'Cast Iron including ingot' in sub-item (i) of item No.
F 2 of the Third Schedule to the Andhra Pradesh General Sales Tax Act". On the
'
same- day the Principal Secretary .Jo the Governipent, Revenue Department
addressed a letter to the Secretary, Andhra Pradesh Small Scale Industries
Association, Vijayawada informing the Association that "a clarification has been
issued to the Commissioner of Commercial Taxes to the effect that "cast iron
G castings" are covered within the term "cast iron inclucling ingot" in sub-item (i) of
item No. 2 of the Third Schedule to the Andhra Pradesh General Sales Tax Act,
1957."

On 27th March, 1984, however, the Commissioner of commercial Taxes,
Government of Andhra Pradesh addressed a letter to all his suberdinate officers
H stating that the question whether 'cast iron castings' fall within the expression
BENGAL IRON CORPN. v. COMMERCIAL TAX OFFICER [B.P. JEEWAN REDDY,J.) 441

'cast iron' is pending before the High Court of Andhra Pradesh and, therefore, the A
collection of arrears of tax due on 'raw castings' is stayed for a period of one year.
At the end of one year, he said, the matter will be re-examined.

On 17th April, 1985 the Government of Andhra Pradesh issued a clarifica-
tion contained in G.O.Ms. No. 383 under sub-section (2) of section 42 of the A.P.
B
Act. It will be appropriate to set out the G.O. in full:

"GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
Andhra Pradesh General Sales Tax Act, 1957-Levy of Sales Tax
c
-- ...
on 'Cast Iron Casting' Clarification issued.

REVENUE (S) DEPARTMENT .
....

G.O. Ms. No. 383. Dated 17.()4..1985
Read the followings:-
D

· 1. Govt. Memo. 2216/SI/83-4, dt. 20.7.84,

2. Lr. No. 2216/83-4, dt. 20.7.84 addressed to Secretary A.P. Small
Scale Industries Association, Vijayawada
E
3, From the CCT's Ref. D.O.FE.Lr. III (3) (1490184, dt. 24.7.1984.

4. Government Memo 3166/SI/84-4, dt. 13 .11.1984.

5. From the CCT.D.O. on CCT's. Ref. Ll/(i) /1063/82 F

6. Govt. Memo No. 3166/Sl/84-5, dt. 22.2.1985.

7. From the CommissionerofCommercial Taxes, Ref. A3/Ll/1093/
82 dt. 19.3.1983.
G
ORDER:

. TheAndhra Pradesh Small Scale Industries Association Vijayawada
requested the Government to clarify whether 'cast iron' and 'cast
iron castings· are one and the same commercial commodity.
H
442 SUPREME COURT REPORTS · [1993) 3 S.C.R.

A 2. This matter was examined at length by the Government of India
in consultation with Ministry of Law, (Department oflegal Aff$rs)
and Director General ofTechinical Development. The Ministry of
Finance, Department of Revenue, Government oflndiaclarijied, in
their letter F.No. 24/10/80/-ST. dt. 31.1.1984. to the effect that "cast
iron castings" are covered within the term "cast iron".
B
3. Government have examined in detail the legal aspects of the issue
and observe that the term "cast iron including ingot, moulds, bottom
plates" as in sub-item (i) of item 2 in the Third Schedule to the
Andhra Pradesh Central Sales Tax covers "cast iron casting" and as
c such "cast iron castings" is not a different commercial commodity
from the commodity "cast iron including ingot, moulds, bottom
plates."

4. Unde~ sub-section (2) of section 42 of the Andhra Pradesh
General Seles Tax Act, 1957 the Government hereby clari/)'that the
D "cast ca§tings" are covered within the term "cast iron including
ingot, moulds, bottom plates" occurred in sub-item (i) of item 2 of
·this Third Schedule to the Andhra Prades.h General Sales Tax Act,
1957.
(emphasis added)

E
(BY ORD~R IN THE NAME OF THE GQVERNOR OF

-
ANDHRA PRADESH)

C.R. NAIR,

F PRINCIPAL SECRETARY TO GOVERNMENT."

Section 42 of the A.P. Act confers upon the State Government the power to
remove difficulties. Sub-section (i) confers the said power to meet the problems
arising from transition from the previous Sales Tax Act t(} the present Sales Tax
' Act. An orderunder sub-section (I) is required to be published in the A.P. Gazette.
G Sub-section (2) is general in nature. An order under sub-s~ction (2) is not required
to be published in the A.P. Gazette. Section 42 reads:

"42 Power to remove difficuities:-

(1) If any difflculty arises in giving effect to the provisions of this
H Act in 1::onsequence of the transition to the said provisions from the
BENGAL IRON CROPN. , .. COMMERCIAL TAX OFFlCER [B.P. JEEWAN REDDYJ.) 443

corresponding provisions of the Acts in force immediately before A
the commencement of this Act, the State Government may, by order
in the'Andhra Pradesh Gazettle, make such provisions as appear to
them to be neccessary or expedient for removing the difficuf,ty.

(2) If any difficulty arises in giving effect to the provisions of this
B
Act (otherwise than in relation to the transition from the provisions
of the corresponding Act in force before the commencement of this
Act), the State Government may, by order make such provisions,
not inconsistent with the purposes of this Act, as appear to them to
be necessary or expedient for removing the difficulty."
c
An order issued under section 42, is undoubtedly statutory in character.

A word abput the validity of section 42 of the A.P.Act. Section,,,37 of the
Payment of Bonus Act conferred a similar power upon the Centra) GOvernment;
it further declared that any such order would be final. It w'¥'1itiuck down by a
Constitution Bench of this Court in ltilan Trading Co. v. Mill Mazdoor Sabha D
(I 967) 1 SCR 15 as amounting to excessive delegation of legislative power.
However, in a subsequent decision in Gammon India Limited etc. etc. v. Union of
India & Ors. etc. [1974] 3 S.C.R. 665, it has been explained by another Constitu-
tion Bench that the decision in Jalan Trading was influenced by the words
occuring at the end of section 37 of the Payment of Bonus Act to the effect that the E
direction of the Government issued thereunder was final. Inasmuch as the said
words are not there in section 34 of the Contract Labour (Regulation and
Abolition) Act, 1970, it was held, section 34 cannot be said to suffer from the vice
of excessive de!Cgation of legislative power. It is meant "for giving effect to the
provisions of the Act,'' it was held. Sub-section (2) of section 42 of the A.P. Act
does no doubt not contain the aforesaid offending words, and can not therefore be F
characterised as invalid. Yet, it must be remembered that the said power can be
exercised "for giving -effect to the provisions of the AcJ", and not in derogation
th~reof. As we shall presently indicate it is necessary to bear this limitation in mind
while examining the effect of G.0.Ms. 383 .

. So far as clarifications/circulars issued by the Central Government and/or G
State Government are concerned, they representmerely their understanding of the
statutory provisions. They are not binding upon the Courts. Iris true that those
clarifications and circulars were communicmed to the concerned dealers but even
so nothing prevents the State from recovering the tax, if in truth such tax was
leviable according to law.. There can be no estoppel against the statute. -The_
understanding of the Government, whether in favour·or against the assessee;·is H
444 SUPREME COURT REPORTS [1993] 3 S.C.R.

A nothing more than its understanding and opinion. It is doubtful whether such
clarifications and circulars bind the quasi-judicial functioning of the authorities
under the Act. While acting in quasi-judicial capacity, they are bound by law and
not by any administrative instructions, opinions, clarifications or circulars. Law is
what is declared by this Court and the High Court- to wit, it is for this Court and
the High Court to declare what does a particular provision of statute.say, and not
B for the executive. Of course, the Parliament/Legislature never speaks or explains·
what does a provision enacted by it mean. (See Sanjeev Coke Manufacturing
---
Company v. Mis. Bharat Coking Coal Ltd. and another, A.l.R. 1983 SC 239.

Now coming to G.o: Ms. 383, it is undoubtedly ofa statutorily character but,
c as explained hereinbefore the power under section 42 cannot be utilised for
altering the provisions of the Act but only for giving effect to the provisions of the
Act. Since the goods manufactured by the appellant are different and distinct
goods from cast iron, their sale attracts the levy created by the Act. In such a case,
the government can not say, in exercise of its power under section.42 (2) that the
levy created by the Act shall not be effective or operative. In other words, the said
D power cannot be utilised for dispensing with the levy created by the Act, over a
i::Jass of goods or a class of persons, as the case may be. For doing that, the power
of exemptionconferredby section 9 of the A.P. Act has to be exercised. Though
~t.is-tfot argued before US, we tried to See the possibility but We find it difficult tO
relate the order in G.O. Ms. 383 to the power of the Government under section 9..
apart from the fact that the nature and character of the power under section 42 is
E different from the one conferred by Section 9. As exemption under section 9 has
to be granted not only by a notification, it is also required to be published in the
Andhra Pradesh Gazette. It is not suggested, nor is it brought to our notice, that
G.O. Ms. 383 was published in the Andhra Pradesh Gazette. This does not,
however, preclude the Government of Andhra Pradesh fromexercisingthe said
F power of exemption, in accordance with law, if it is so advised. We need express
no opinion on that score.

The learned counsel for the appellant brought to ou~ notice that the very same
Division Bench which rendered the decision in Deccan Engineers had rendered
another decision in Tax Revision Case No. 93of1990 (The State ofA.P. v. Pratap
G Steel) applying G.O. Ms. 383 and giving relief to the dealer. It is argued that the
Division Bench ought to have taken the same view in Deccan Engineers as well.
We have perused the decisio~ ui Pratap Steel. It is a short judgment dismissing the
Revision applying G.O.Ms. 383. It does not appear that the matter was argued in
the manner it was in Deccan Engineers. The said argument, therefore, cannot
advance the case of the appellant.
8
BENGAL IRON CROPN. v. COMMERCIAL TAX OFFICER [B.P. JEEWAN REDDY.I.) 445

In this view of the matter in is not neces~ for us to go into the question A
wether the word 'including' in section 14 (iv) (i) of Central Sales Tax.Act and item
(2) (i) of the Third Schedule to the A.P. Act has the effect of making the said sub-
clause exhaustive or otherwise.

Accordingly, w~ hold that the cast-iron castings manufactured by the
appellants do not fall within the expression 'cast iron' in Entry 2(i) of the Third
B
Schedule of the Andhra Pradesh General Sales Tax Act or within Section 14 (iv)
(i) of the Central Sales Tax Act.

The appeal accordingly fails and is dismissed. No order as to costs.
c
W.P. "fo...163QF1992

This writ petition preferred under Article 32 of the Constitution is directed
against the notices issued by the assessing authority proposing to reopen the
ai;sessments of the petitioner/appellant with respect to earlier assessment years · D
and aJso seeking to apply the principle of _Deccan Engineers to the pending
assessments. r·'or the reasons stated hereinabove this writ petition fails and is
accordingly dismissed. No costs.

G.S.B. Appeal and petition dismissed.