In Brief
The Supreme Court addressed whether iron wire extracted from iron rods constitutes a separate taxable commodity under the U.P. Trade Tax Act, 1948. The Court held that iron rods and iron wires are one and the same commodity. The extraction of wires from rods does not amount to manufacturing activity, and therefore no separate sales tax liability arises on the wire beyond the tax already paid on the rods. The Court upheld the High Court's decision favoring the assessee, relying on prior precedent that when items are clubbed together under tax statutes, they must be taxed as a single taxable unit.
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