VENKATA RAMAIYA, J. - (1.) THE Deputy Commissioner of Sales Tax, Bangalore, has under Section 16 of the Mysore Sales Tax Act referred the following question in C.P. No. 64 of 1952-53 :- "Whether in respect of sale of artificial silk manufactured in foreign countries and imported to India, the petitioner is liable to pay sales tax thereon after 19th November, 1948, in view of Government notification No. F1. 4851-S.T. 1-48-26".
(2.) SUBSTANTIALLY the same question has been referred by him in C.P. No. 73 and by the Commissioner of Sales Tax in C.P. No. 28 of 1953. Arguments were addressed in common on the footing that the answer to be given in each case has to be identical. The claim for exemption from liability in all the cases is based on the interpretation of the terms of clause (1) of the notification mentioned in the question. Clause (1) is as follows :- "In exercise of the powers conferred by Section 6 of the Mysore Sales Tax Act, 1948, the Government of His Highness the Maharaja is pleased to direct that (1) the sale of filature silk, foreign silk and charka silk twisted by hand, shall be exempt from taxation under sub-section (1) of Section 3 of the said Act." Section 3 of the Act provides for levy of the tax and Section 6 for exemption or reduction in rate in respect of the tax by a notification of Government. Of the three kinds of silk referred to therein, charka silk and filature silk may be left out as artificial silk is not alleged to be either of these but is said to be "foreign silk".
(3.) IN support of this it was argued that if the word "silk" is meant to denote only the fine, soft substance produced by silk worm to form their cocoons the expression "filature silk" itself is wide enough to include local as well as foreign silk and therefore the term "foreign silk" would be superfluous unless it is deemed to have reference to artificial silk. The argument implies that all silk is either "filature silk" or "charka silk" and these are exhaustive descriptions of whatever is silk. Assuming this to be true it does not follow that what is not silk must be regarded as silk.;