A C T O Vs. JAWAHAR PATANG HOUSE

JUDGEMENT

(1.) THE Board of Revenue for Rajasthan has prepared the statement of case and referred the following question of law in pursuance of the direction given by this Court under section 15 (3a) of the Rajasthan Sales Tax Act, 1954. " Whether, on the facts and in the circumstances of the case, the Board of Revenue was right in holding that the cotton thread used for kite flying was not different from sewing thread and was taxable at a fixed rate and not at the general rate ?"

(2.) THE contention of the learned advocate, Shri G. S. Bafna is that the cotton thread used for kite flying cannot be considered to be a sewing thread because it is not used for the purpose of sewing. In this case the proceedings under section 12 of the Rajasthan Sales Tax Act were taken for levying the tax on the sale of thread at general rate instead of the rate prescribed for that of sewing thread. THE appeal was rejected by the Deputy Commissioner (Appeals), Commercial Taxes, Jaipur, on December 20, 1972 and thereafter in view of the judgment of the Board of Revenue dated October 27, 1972 in Revision No. 67 of 1972 the rectification application was submitted and the same was allowed and the levy of additional tax was set aside. THE revision preferred by the assessing authority before the Board of Revenue was also rejected. THE reference application was rejected and thereafter the directions were given by this Court under section 15 (3a) of the Rajasthan Sales Tax Act to refer the above question of law. Now in view of the amendment in the Rajasthan Sales Tax Act the said application is treated as revision application and is disposed of accordingly. THEre is no dispute that the commodity sold was a thread and it was made of cotton. THE cotton thread which is having the primary use as a sewing thread if it is used for flying the kites will not make a change in the basic character of the commodity on account of its use. THE taxation of a commodity is based mainly on its primary and general use. If a commodity is capable of being used for some other purpose then because of the use in such other purpose, there cannot be any difference in the rate of tax. THEre does not appear to be any justification for interfering with the order of the Board of Revenue. THE revision application is dismissed. No order as to costs. Petition dismissed. .