O.CHINNAPPA REDDY,J. - (1.) THE Sales Tax Tribunal, Punjab, has sought our opinion on the following two questions : (1) Whether rubber transmission belting is covered by item 30-B of Schedule B to the Act so as to earn an exemption from the levy of tax ? (2) Whether rubber transmission belting is covered by item 30-C of Schedule B to the Act so as to earn exemption from the levy of sales ta x ?
(2.) IN Order to answer the questions, it is necessary to know what "rubber transmission belting" is. The parties are agreed that the following description of "rubber transmission belting" contained in the Order of the Sales Tax Tribunal is correct: Transmission belting is manufactured by laying thin layers of compound made by rubber chemicals, colouring, chalk and petrol on canvas and thereafter belting is prepared in different thicknesses by mere contact folding of the rubberised canvas. From this description, it is clear that "rubber transmission belting" is manufactured by the superimposition of rubber compound on either side of canvas. The que'stion is, whether "rubber transmission belting" is covered by entry 30-B or 30-C of Schedule B of the Punjab General Sales Tax Act so as to be exempt from the imposition of sales tax.
(3.) ITEM 30-B is as follows : Such varieties of canvas cloth, tarpaulins and similar other products, manufactured with cloth as base, as are manufactured in textile mills, powerloom factories and processing factories.;