Ayyangar, J. - (1.) The proper construction and legal effect of a notification under s. 9(1) of the Andhra Pradesh General Sales Tax Act, 1957 (A.P. VI of 1957) which for shortness we would call the Act, is the principal question that arises for consideration in this appeal by special leave in which the correctness of the decision of the High Court dismissing a Writ Petition filed by the appellant is challenged.
(2.) Section 5 of the Act is the charging section under which dealers are liable to pay sales tax on their turnover. Under sub-s. (3)(a) of this section, read with Sch. II to the Act cotton textile goods which was the commodity in which the appellants were dealing, were liable to tax at a single point. Section 9 of the Act enabled the State Government to exempt the tax leviable under the Act. In exercise of the power thus conferred a notification was issued on December 13, 1957, which read : "In exercise of the powers conferred by sub-Section (1) of Section 9 of the Andhra Pradesh General Sales Tax Act, 1957, (Andhra Pradesh Act VI of 1957, hereinafter referred to as the said Act) the Governor of Andhra Pradesh hereby exempts from the tax payable under the said Act, with effect on and from the 14th December, 1957, the sale or purchase of any of the goods appended hereto : Provided that in the case of any class of such goods in respect of which additional duties of excise are leviable by the Central Government under clause 3 of the Additional Duties of Excise (Levy and Distribution) Bill, 1957, read with s. 4 of the provisional Collection of Taxes Act, 1931 (Central Act XVI of 1931), the exemption shall be subject to the following conditions, namely :- 1. The dealer shall prove to the satisfaction of the assessing authority that additional duties of excise have been so levied and collected on such goods by the Central Government, in default of which the dealer shall be liable to pay the tax under the said Act in respect of such goods. 2. Any dealer who is so liable to pay the tax may, at his option, pay, in lieu thereof a lump sum by way of compensation determined in the manner specified in condition (3). ********** "
(3.) As nothing turns on the terms of condition 3 with which the notification ends it is not set out. The appendix which is referred to in the opening paragraph has three clauses the first of which is the only material one and this runs : "1. All varieties of textiles, viz., cotton, woollen or silken including rayon, art silk or nylon, whether manufactured by handloom, powerloom or otherwise;" ;