In Brief
The case examined whether oxygen sold to a steel manufacturer qualifies as 'raw material' for tax purposes under the Bihar Finance Act, 1981. A six-member expert committee found oxygen was only a 'refining agent' used to reduce carbon content, not raw material. All three lower authorities confirmed this finding and levied 3% tax. The High Court reversed this, holding oxygen was raw material and entitled to 2% concessional tax. The Supreme Court allowed the State's appeal, holding oxygen is a refining agent, not raw material. It also emphasized that the High Court should not have interfered with concurrent factual findings of lower authorities based on expert technical assessment when exercising constitutional jurisdiction under Article 226.
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