Brijlal Gupta, J. - (1.) These three writ petitions raise common points and can be conveniently disposed of by a common judgment.
(2.) The petitioners in two writ petitions are manufacturers of handmade biris and an importer in the third petition. They were assessed to sales tax under the U.P. Sales Tax Act for the assessment year 1958-59 on the sale of hand-made biris. It is common ground that with effect from 1st July, 1958, the turnover of hand-made biris was exempted from sales tax. The question which has arisen is in respect of the sales tax assessed on the sale of such biris during the period 1st April, 1958, to 30th June, 1958. During this period Notification No. ST-905/X dated 31st March, 1956, was in force. Under this notification sales tax was leviable at the rate of one anna per rupee on the sale of biris by manufacturers and importers.
(3.) Sri Hari Swarup learned counsel for the petitioners has challenged the validity of the assessment orders passed in these cases. He has invited my attention to the provisions of Section 15(a) of the Central Sales Tax Act and the explanation thereto. That section as it stood at the material time was as follows : 15.Restrictions and conditions in regard to tax on sale or purchase of declared goods within a State.-Every sales tax law of a State shall, in so far as it imposes or authorises the imposition of a tax on the sale or purchase of declared goods, be subject to the following restrictions and conditions, namely: (a) the tax payable under that law in respect of any sale or purchase of such goods inside the State shall be levied only in respect of the last sale or purchase inside the State and shall not exceed two per cent, of the sale or purchase price; Explanation.-The expression 'last sale or purchase inside the State' means the transaction in which a dealer registered under the sales tax law of the State (i) sells to or purchases from another such dealer declared goods for use by the purchaser in the manufacture of goods for sale or for use by the purchaser in the execution of any contract; or (ii) purchases declared goods from another such dealer for sale to a dealer not registered under the sales tax law of the State or to a consumer in the State.;