Appeal No 4474 of 1992
From the Judgment and order dated 2871992 of the Andhra Pradesh High Court in WP No 9315 of 1992
WITH WRIT PETITION CIVIL NO 763 OF 1992
Under Article 32 of the Constitution of India AK Ganguli Rakesh K Khanna for RP Singh for the Appellant Petitioners
C Sitaramiah Ms Pushpa Reddy and Mrs TVS Narasimhachari for the Respondents
J CIVIL APPEAL NO
4474 OF 1992
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 as general goods
He overruled 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 Deputy Commissioner 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 WP No 9315 of 1992 in the High Court of Andhra Pradesh
His main contention in the writ petition was that by virtue of GOMs
No 383 Revenue S Department dated 1741985 his products are declared goods  and are therefore liable to tax only 4
The Division Bench of the High Court dismissed the writ petition following its earlier decision in Deccan Engineers vs State of Andhra Pradesh reported in 1991 Vol
12 AP Sales Tax Generals 138 84 STC 92
In Deccan Engineers it was held by the AP High Court that the expression  cast iron  in item2iof the Third Schedule to the Andhra Pradesh General Sales Tax Act does not include cast iron 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 436 declared goods in respect of which a single point tax only is leviable under section 6
Section 6 was enacted by the AP Legislatureto accord with sections 14 and 15 of the 
Item2 of the third Schedule to the AP Act reads as follows THIRD SCHEDULE As amended upto 15th August 1987 Declared goods in respect of which a single point tax only is leviable under Section 6
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 ingot moulds bottom plates iron scrap cast iron scrap runner scrap and iron skill scrap ii steel sends ingots slabs blooms and billets of all qualities shapes and sizes iiiskelp 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 v steel structurals angles joints channels tees sheet pilling sections
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 straight lengths and in coil form as rolled and in revitted condition viiplates both plain and chequered in all qualities viiidiscs rings forgoings and steel castings ix tool alloy and special steels of any of the above categories x steel melting scrap in all forms including steel skull turnings and borings xi steel tubes both welded and seamless of all diameters and lengthsincluding tube fittings xiitin plates both not dipped and electrolytic and tin free plates xiiifish plate bars bearing plate barscrossing sleeper bars fish plates bearing plates crossing sleepers and pressed steel sleepers rails heavy and light crane rails xivwheels tyres axles and wheel sets xv wire rods and wires rolled drawn galvanised aluminised tinned or coated such as by copper xvidefectives rejects cuttings or end pieces of any of the above categories
Item 2 of the Third Schedule to the AP Act is an exact replica of item iv of section 14 of the 
According to section 15 of the Central Act declared goods  cannot be taxed at a rate exceeding 4 or at more than one stage
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 of item 2 i of the Third Schedule to the AP Act Item iv i of section 14 of the CST Act
At this stage it is necessary to a certain precisely what does cast iron  mean and how are the products of the appellant manufactured Cast iron  is defined in the Concise 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 upto 4 carbon and is more brittle but more easily fused than steel
 According to Van Nostrand s Scientific encyclopedia cast iron  is primarily the product of remelting and casting pig iron
Interestingly the expression cast iron  with a hyphen between cast  and iron  has been defined separately as meaning 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 publication of the AP 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 rendering it is without a hyphen That cast iron  is different from cast iron 438 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 LM15 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 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 that the relevant entry in section 14 of the Central Act also IIIrd 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 clarified that cast iron castings are covered by cast iron and the State Government has also issued the aforesaid GO subsequently under Section 422 of the State Act clarifying that the cast iron castings are covered within the term cast iron
 It is thus clear that cast iron  is different from cast iron castings  manufactured 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 silicon thereby deriving cast iron  and then pours it into different moulds
In sum 1 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 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 422 of the AP Act namely viz GO Ms No 383 dated 1741985
It is therefore necessary to refer to them
The earliest clarification is the one contained in the latter dated 28th February 1977 from the Department of Revenue and Banking Revenue Wing 439 Government of India addressed to the FinanceRevenue Secretaries of all State Governments and Union Tarritories
It reads thus SubjectClarification as to whether the term  Cast Iron  mentioned in section 14iv i of the would cover cast Iron casting
In continuation of the marginally noted communications and with reference to this Department s letter No 243n3 ST
20111973 I am directed to say that the question whether the expression cast iron  used in Section iv i of the will include  Cast iron casting  has been re examined in consultation with the Directorate General of Technical Development Chief Chemist and the Ministry of Law Justice  Company Affairs
This Department has been advised that the existing expression cast iron  in the aforesaid section will cover cast iron casting also Yours faithfully Sd Deputy Secretaryto the Govt
of India
 Pursuant to the above clarification by the Central Government the Commissioner 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 of first sale in the State under entry 2 of the III Schedule of APGST Act
 To the same effect is another clarification issued by the Commissioner of Commercial Taxes Government of Andhra Pradesh to his subordinate officials on 1231982
The next clarification from the Government of India was on 3 1st 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 and requested the Ministry of Finance Government of India to examine the same
It was in reply to the said query that the letter dated 3 1st January 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 440 General of Technical Development
It set out the opinion of the Ministry of Law as also the opinion of the Director General of technical Development
The latter s opinion reads Cast iron is an alloy iron of Carbon silicon and other alloying elements if required ie Cast Iron Castings are covered under the 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 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 Committee 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 Governments and Admissions 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 2 of the Third Schedule to the Andhra Pradesh General Sales Tax Act
On the same day the Principal Secretaryto the Government 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 castings are covered within the term cast iron including 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 subordinate officers stating that the question whether cast iron castings  fall within the expression 441 cast iron  is pending before the High Court of Andhra Pradesh and therefore the 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 reexamined
On 17th April 1985 the Government of Andhra Pradesh issued a clarification contained in GOMs
No 383 under sub section 2 of section 42 of the AP Act
It will be appropriate to set out the GO in full GOVERNMENT OF ANDHRA PRADESH ABSTRACT Andhra Pradesh General Sales Tax Act 1957 Levy of Sales Tat on Cast Iron Casting  Clarification issued
REVENUE S DEPARTMENT
G O Ms No 383
Dated 17041985 Read the followings 1
2216SI83 4
20784 2
No 221683 4 dt
20784 addressed to Secretary AP Small Scale Industries Association Vijayawada 3
From the CCT s Ref
DOFELr
III 3 149084 dt
2471984
Government Memo 3166SI84 4 dt
13111984
From the CCTDO on CCT section Ref
LIi 106382 6
Memo No 3166SI84 5 dt
2221985
From the commissioner of Commercial Taxes Ref
A3LI109382 dt
1931983
ORDER The Andhra 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
442 2
This matter was examined at length by the Government of India in consultation with Ministry of Law Department of legal Affairs and Director General of Techinical Development
The Ministry of Finance Department of Revenue Government of India clarified in their letter FNo
241080 ST
dt 3111984
to the effect that cast iron castings are covered within the term cast iron
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 such cast iron castings is not a different commercial commodity from the commodity cast iron including ingot moulds bottom plates
Under sub section 2 of section 42 of the Andhra Pradesh General Seles Tax Act 1957 the Government hereby clarify that the cast castings 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 Pradesh General Sales Tax Act 1957
emphasis added BY ORDER IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH CR NAIR PRINCIPAL SECRETARY TO GOVERNMENT Section 42 of the AP 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 to the present Sales Tax Act
An order under sub section 1 is required to be published in the AP Gazette
Sub section 2 is general in nature
An order under sub section 2 is not required to be published in the AP Gazette
Section 42 reads 42 Power to remove difficulties 1 If any difficulty arises in giving effect to the provisions of this Act in consequence of the transition to the said provisions from the 443 corresponding provisions of the Acts in force immediately before 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 difficulty
2 If any difficulty arises in giving effect to the provisions of this 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
 An order issued under section 42 is undoubtedly statutory in character
A word about the validity of section 42 of the APAct
Section 37 of the Payment of Bonus Act conferred a similar power upon the Central Government it further declared that any such order would be final
It was truck down by a Constitution Bench of this Court in Jalan Trading Co vs Mill Mazdoor Sabha  as amounting to excessive delegation of legislative power
However
in a subsequent decision in Gammon India Limited etc
vs Union of India  Ors etc
  it has been explained by another Constitution 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 direction of the Government issued thereunder was final
Inasmuch as the said words are not there in section 34 of the  it was held section 34 cannot be said to suffer from the vice of excessive delegation 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 AP Act does no doubt not contain the aforesaid offending words and can not therefore be characterised as invalid
Yet it must be remembered that the said power can be exercised for giving effect to the provisions of the Act and not in derogation thereof
As we shall presently indicate it is necessary to bear this limitation in mind while examining the effect of GOMs 383
So far as clarifications kirculars issued by the Central Government andor State Government are concerned they represent merely their understanding of the statutory provisions
They are not binding upon the Courts
IT is true that those clarifications and circulars were communicated 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 444 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 for the executive
of course the ParliamentLegislature never speaks or explains what does a provision enacted by it mean
See Sanjeev Coke Manufacturing Company vs Mls
Bharat Coking Coal Ltd and another  Now coming to GO Ms 383 it is undoubtedly of a statutorily characterbut 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 power cannot be utilised for dispensing with the levy created by the Act over a class of goods or a class of persons as the case may be
For doing that the power of exemption conferred by section 9 of the AP Act has to be exercised
Though it is not argued before us we tried to see the possibility but we find it difficult to relate the order in GO 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 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 GO Ms 383 was published in the Andhra Pradesh Gazette
This does not however preclude the Government of Andhra Pradesh from exercising the said 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 our notice that the very same Division Bench which rendered the decision in Deccan Engineers had rendered another decision in Tax Revision Case No 93 of 1990 The State of AP vs Pratap Steel applying GO 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 decision in Pratap Steel
It is a short judgment dismissing the Revision applying GOMs 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
445 In this view of the matter in is not necessary for us to go into the question wether the word including in section 14 iv i of and item 2 i of the Third Schedule to the AP Act has the effect of making the said subclause exhaustive or otherwise
Accordingly we bold that the cast iron castings manufactured by the appellants do not fall within the expression cast iron  in Entry 2i of the Third Schedule of the Andhra Pradesh General Sales Tax Act or within Section 14 ivi of the 
The appeal accordingly fails and is dismissed
No order as to costs
W P No763 OF 1992 This writ petition preferred under Article 32 of the Constitution is directed against the notices issued by the assessing authority proposing to reopen the assessments of the petitionerappellant with respect to earlier assessment years and also seeking to apply the principle of Deccan Engineers to the pending assessments
For the reasons stated hereinabove this writ petition fails and is accordingly dismissed
No costs
GSB Appeal and petition dismissed


Summary:
In respect of an ancient temple situate in the State of Bihar disputes arose in I897 between the high priest and the  pandas  regarding the control of the temple which ultimately led to a suit being filed under section 539 now section 92 Of the Code of Civil Procedure in the Court of the District judge of Burdwan and a decree was passed by the Additional District judge under which a scheme was framed for the proper management of the temple
The decree was confirmed by the Calcutta High Court and the scheme itself was later modified from time to time by the said High Court
After the coming into force of the Bihar Hindu Religious Trusts Act 1950 the President of the Bihar State Board of Religious Trusts acting under section 59 of the Act served a notice on the respondent who had been appointed Sardar Panda for the temple under the scheme asking him to furnish a statement in respect of the temple and the properties appertaining thereto
The respondent made an application under article 226 of the Constitution to the High Court of Patna challenging the validity of the action taken against him on the grounds 1 that the Bihar 625 Hindu Religious Trusts Act 1950 was ultra vires the Bihar Legislature 2 that the Bihar Legislature did not have legislative competence to deal with the temple in question as some of the properties appertaining to the temple were situate outside Bihar and 3 that in any case the Act did not apply to the temple by reason of the fact that the temple and its properties were administered under a scheme made by the Court of the District Judge of Burdwan and approved by the Calcutta High Court both of which were situate outside the territorial limits of Bihar as otherwise the Act by some of its provisions would seek to interfere with the jurisdiction of courts which are outside Bihar and thereby get extra territorial operation
Held 1 that the Bihar Hindu Religious Trusts Act 1950 is intra vires the Bihar State Legislature Mahant Moti Das vs section P Sahi 1959 SUPP
2 SCR 563 followed
2 that it is competent to the Bihar Legislature to legislate in respect of religious trusts situate in Bihar though some of the properties belonging to the trust may be outside Bihar State of Bihay vs Charusila Dasi 1959 SUPP
2 SCR 601 followed
3 that the provision of law in sub section
5 of section 4 Of the Act by which section 92 Of the Code of Civil Procedure shall not apply to any religious trust in the State of Bihar is valid and 4 that as under section 45 Of the Act religious trusts in Bihar are taken out of the purview of section 92 Of the Code of Civil Procedure the jurisdiction of the District judge of Burdwan or the Calcutta High Court to deal with the temple in question under section 92 comes to an end consequently the Act and its several provisions do not suffer from the vice of extra territoriality and the Act applies to the temple in question and the properties appertaining thereto