In Brief
The Supreme Court decided whether iron wire extracted from iron rods constitutes a separate taxable commodity. The Court held that iron rods and iron wires are one and the same commodity under the Central Sales Tax Act, 1956 and U.P. Trade Tax Act, 1948. The extraction of wires from rods does not amount to manufacturing activity. Therefore, iron wire is not separately taxable beyond the sales tax paid on iron rods. The Court upheld the High Court's decision favoring the assessee and dismissed revenue appeals while allowing the assessee's appeal.
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