THE STATE OF MADHYA BHARAT (Now the STATE OF MADHYA PRADES vs HIRALALJI

The Supreme Court held that iron bars, flats, and plates produced from scrap iron and iron plates are exempt from sales tax under Notification No. 58 dated October 1953, issued under the Madhya Bharat Sales Tax Act, Samvat 2007 (Act No. 30 of 1950). The Court distinguished between raw materials and finished goods, asserting that while finished goods are taxable, raw materials like iron and steel retain their exempt status even after being re-rolled. The High Court's decision favoring the respondent was upheld, confirming the exemption for the goods sold.