DAS GUPTA, J. - (1.) THIS appeal is against the judgment of Bose, J., sitting singly by which he held that the respondent No. 1 Messrs. Shree Ganesh Jute Mills Ltd., was not liable to pay sales tax in respect of certain sales of hessian, cancelled the notification dated the 8th of November, 1950, which had been served on it by the Commercial Tax Officer demanding an amount of Rs. 9,401-10-6 on account of sales tax and directed the Commercial Tax Officer and the State of West Bengal to forbear from giving effect to the said notification.
(2.) THIS judgment was given on an application by the respondent No. 1 Messrs. Shree Ganesh Jute Mills Ltd. This respondent had in execution of the contract supplied to the Government of India hessian goods valued at Rs. 2,40,000 between the 1st of August, 1948, and the 1st of November, 1948. The Commercial Tax Officer who had jurisdiction to demand payment of sales tax on this, if any sales tax was payable, issued a notice of demand on the 8th of November, 1950, demanding payment of Rs. 9,401-10-6. It was upon this that Messrs Shree Ganesh Jute Mills Ltd. made its application praying for (1) a writ of mandamus or in the nature of mandamus on the respondents to cancel and/or recall and/or forbear from acting or giving effect to the demand of Rs. 9,401-10-6; (2) a writ of prohibition or in the nature of prohibition prohibiting the respondent from taking any steps in connection with levying or demanding any sales tax in respect of these goods; (3) a writ of certiorari or in the nature of certiorari calling upon the respondents to produce the records and proceedings in the alleged demand and quashing the same. Sinha, J., granted Rule nisi on the respondent to show cause why an order in the nature of prohibition, as asked for, should not be issued. The case of Messrs Shree Ganesh Jute Mills Ltd. was that under the provisions of the Bengal Finance (Sales Tax) Act the sale of these goods must be excluded in calculating the taxable turnover. If this contention be correct, it is clear that the Commercial Tax Officer acted illegally in making the demand for the sales tax. Bose, J., who heard the Rule came to the conclusion that the contention of Messrs Shree Ganesh Jute Mills Ltd. was correct and gave judgment in favour of the applicant as mentioned earlier.
(3.) THE contention of the appellants, the Commercial Tax Officer and the State of West Bengal, is that in law the sale in question cannot be excluded in calculating the taxable turnover.;