M.C.Desai, C.J. - (1.) This is a reference by the Judge (Revisions), Sales Tax, under Section 11(1) of the U.P. Sales Tax Act, made at the instance of the assessee, calling for an answer of this Court on the question: Whether on the facts and circumstances of the case the word 'books' used in Section 4 would include the diaries sold by the applicants?
(2.) In this case we are concerned with the assessment for 1949-50. The same question is raised in the two connected references which are made at the instance of the same assessee and are for the next two assessment years.
(3.) The assessee is a dealer in books, stationery and diaries and has been assessed to sales tax in the three assessment years on turnovers which include proceeds of sale of diaries. Under Section 3 of the Act sales tax is payable in an assessment year on a turnover, i.e., the aggregate of proceeds of sale of goods by a dealer. Section 4 (as it stood then) exempts proceeds of sale of "water, salt, foodgrains, milk, gur, electrical energy for industrial purposes, books, magazines, newspapers and motor spirit", and empowers the State Government to exempt by notification in the official Gazette proceeds of sale of other goods. In exercise of this power the State Government has issued Notification No. ST-1433/X-1012-1948 dated 30th March, 1949, exempting "exercise books" from taxation under the Act. The question raised before us is whether diaries are books within the meaning of Section 4, and, therefore, exempt from taxation under the Act. They are one- page-a-day diaries bound like books. At the top of each page there is a sloka from Bhagwat Gita. In the beginning there are a fe pages containing general information on various matters and pages other than them are blank except for the slokas written at the top. Most of the space on each of these pages is blank. The assessee's contention is that the diaries are books within the meaning of Section 4 and, therefore, proceeds of their sale are not to be included in a. turnover for any of the three assessment years. On the other hand, it was contended on behalf of the Commissioner that they are not books or exercise books and are, therefore, not exempt either under Section 4 or under Notification No. 1433 dated 30th March, 1949.;