- (1.) This appeal by special leave impugns the correctness of a judgment and order of a Division Bench of the High Court of Madhya Pradesh Ruchi Fabrics Ltd. v. State of M.P., 1997 106 STC 300.
(2.) The Madhya Pradesh General Sales Tax Act contains Schedule I. By reason of Section 10 thereof, no tax is payable on the sales or purchases of goods specified in Schedule I. Sub-section (2) of Section 10 reads thus : "The State Government may, in respect of any goods, by notification, amend Schedule I so as to include therein any goods not already specified or may relax or omit any of the conditions and exceptions set out in the corresponding entry in the third column thereof."
(3.) Schedule I, as it originally stood, covered "all varieties of cloth manufactured in mills or on powerlooms or handlooms including processed cloth". The State Government, in exercise of powers under Section 10(2), amended Schedule I, as a result whereof certain cloth that was covered by Schedule I, as it originally stood, was now excluded.;