PATHAK, J. - (1.) THE Additional Judge (Revisions) Sales Tax, Bareilly Range, Bareilly, has referred the following two questions under section 11(1) of the U.P. Sales Tax Act : "(1) Whether lassi is a milk product and is exempted under section 4(1) of the U.P. Sales Tax Act. (2) Whether lassi is a cooked food and is covered under Notification No. ST-2190/X-1097-55 dated 24th July, 1957."
(2.) THE assessee, M/s. Dina Nath Lassiwala, carries on business, as his name indicates, in the preparation and supply of lassi. Lassi is prepared from curd by adding water and a small quantity of sugar as required. In assessment proceedings for the years 1963-64, 1964-65 and 1965-66 the assessee was assessed to sales tax on the turnover of lassi. His appeals against the assessments were dismissed by the appellate authority. Thereafter, his revision applications were dismissed by the Additional Judge (Revisions) Sales Tax. And now these references have been made. The first question is whether lassi is a milk product and is exempt under section 4(1) of the U.P. Sales Tax Act. Section 4(1) of the Act provides : "4. Exemption from tax. - (1) No tax shall be payable on - (a) the sale of water, salt ......... milk, ............... and any other goods which the State Government may, by notification in the Official Gazette, exempt from time to time; and (b) ...................."
(3.) BY Notification No. ST-911/X dated 31st March, 1956, the State Government exempted "10. Milk and milk products such as chhena, dahi, khoa, butter and cream but excluding (1) products sold in sealed containers; and (2) sweetmeats." ;