In Brief
This case examined whether iron and steel reinforcements used in building construction lose their character as declared goods when incorporated into cement concrete. The Supreme Court held that mere cutting, bending, and binding of steel reinforcement bars does not constitute manufacture or change the identity of these goods. Works contracts involving declared goods remain subject to constitutional restrictions requiring single-point taxation at rates not exceeding 4%, regardless of the nature of the works. The Court affirmed that the taxable event is incorporation into the works, with tax measured by the value of goods at that point. The appeals of assessees challenging higher tax rates were allowed, while an appeal involving pre-fabricated items like doors and window frames was dismissed as those involved manufacture of new goods."
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