S.K.MAL LODHA, J. - (1.)THIS Court by its order July 4, 1973 passed on an application Under Section 15(3A) of the Rajasthan Sales Tax Act, 1954 (No. XXIX of 1954) (for short 'the Act' herein) directed the Board of Revenue for Rajasthan, Ajmer, (which will for the sake of brevity he referred to as 'the Board') to refer the following question for decision to this Court:
Whether in the facts and circumstances of the case the turnover of castor oil amounting Rs. 33,993.22 was liable to tax at the hands of the assessee.?

(2.)M /s Bhoot Oil Mills which is respondent, shall be referred to as 'the Dealer' hereinafter.
The Dealer was assessed by the Commercial Taxes Officer, Special Circle, Jodhpur, on October 15, 1966 for the assessment period April 1, 1961 to March 31, 1962. The assessing Authority held that the Dealer had wrongfully sold castor oil worth Rs. 33,993.22 to Textile and Leather Industries on the basis of Form S.T. 17, by which the Textile and Leather Industries claimed that the items purchased then by them representing the sale are exempted from the payment of sale tax. On the basis of Form S.T. 17 the Dealer did not charge the sales tax from the purchasers. The Assessing Authority further came to the conclusion that the Textile and Leather Industries were not entitled to purchase castor oil for use in manufacture vide Govt. Notification No. F. 21 (7)SR/55 dated April 14, 1955. Being dissatisfied with the assessment order, the Dealer filed the appeal, The Dy. Commissioner (Appeals), Commercial Taxes, Udaipur, by his order Ex. 2 dated November 18, 1967, while disposing of a number of appeals concurred with the Assessing Authority regarding imposition of Sale Tax on castor oil. The Dealer filed revision before the Board. The Board, by its order dated May 3, 1971 in so far as it relates to the imposition of sales tax on the sale of castor oil, accepted the revision, and imposition of tax on castor oil was set aside. An application for making a reference was filed. But the Division Bench of the Board dismissed the application for reference holding that as it could not be decided within a period of 120 days, no orders could then be passed. The Department filed a reference application before this Court which was allowed and the Board was directed to refer the aforesaid question for decision to this Court.

(3.)WE have heard Mr. A.K. Mathur, learned Additional Advocate General appearing for the Commercial Taxes Officer, Special Circle, Jodhpur and Mr. M.C. Bhoot, learned Counsel for the Dealer (M/s Bhoot Oil Mills, Jodhpur).