M.C.Desai, C.J. - (1.) The Judge (Revisions) has submitted this statement of case inviting this Court's answer to the following question:- Whether the word 'goods' appearing in item No. 9 of List I given in the Notification No. ST-117/X-923-1948 dated 8th June, 1948, modified by Notification No. ST-1429/X-1012-1948, dated 30th June, 1949, refers to and qualifies 'canvas' also or whether the word 'canvas' means only the canvas cloth and not included in cloth which is item No. 2 in the same list?
(2.) The assessee at whose instance the statement has been referred, is a manufacturer of canvas cloth and the question is at what rate it is liable to pay sales tax on the turnover of sale of canvas cloth.
(3.) Under Section 3 of the U. P. Sales Tax Act subject to the other provisions of the Act, a dealer is liable for each assessment year to pay a tax at the rate of two naye paise per rupee on his turnover of a year,. Section 3-A empowers the State Government to declare that the turnover in respect of any goods shall not be liable to tax except at such single point in the series of sales by successive dealers as may be specified. When the State Government makes such a declaration it is empowered to declare further that the turnover in respect of such goods shall be liable to tax at such rate not exceeding seven naye paise per rupee as may be specified. In exercise of the powers conferred by Section 3-A, the State Government issued Notification No. ST.-117/X-923-1948 dated 8th June, 1948, declaring that the proceeds of sale of goods entered in the Schedule attached to it shall not be included in the turnover of any dealer except at the point mentioned in the Schedule and that the rate of tax in respect of the turnover of the goods shall be as entered in column 5 of the Schedule. The relevant items of the Schedule are as follows :- Serial Name of goods Circumstances under Point of Rate of num-which to be included tax tax perber in turnover. rupee. * * * * * 2. Cloth manufac- If manufactured in Sale by manu-Six pies. mills. U.P. facturer. 3. Woollen goods and knitting wool. * * * * * 6. Iron and steel. 7. Iron and steel goods. * * * * * 9. Leather, canvas, crepe " " Six pies. or rubber goods (except tyres and tubes). Note.-The term manufacturer in case of leather goodsincludes* * but does not include * * * carrying on the business of making these goods * * *. * * * * * 16.Tyres and tubes On 30th March, 1949, the State Government amended the above notification with effect from 1st April, 1949, and declared that "the following goods shall be taxed at all points of sale at the rate of three pies per rupee: (1) Leather, canvas, crepe and rubber goods (except tyres and tubes).";