- (1.) THE brief facts of the case are that the Assistant Sales Tax Officer, Udaipur assessed tax on the sales of Plastic Vegetable Leather cloth for the period 1960-61. THE assessee went in appeal before the Deputy Commissioner Appeals Excise & Taxation, Jodhpur. It was pleaded that since P. V. leather cloth is a cotton textile it is exempt from sales tax. THE learned Dy. Commissioner ignored the contention on the ground that P. V. Leather Cloth does not come within the definition of cotton textile. THE Government has exempted leather cloth from sales tax vide notification dated 28/2/1961. Hence any sale prior to the issue of the said notification dated 28/2/61 of leather cloth is taxable. THE assessee has therefore come up in revision against the order of the learned Deputy Commissioner dated 9/11/62.
(2.) THE learned counsel for the petitioner argued that the crucial point to be seen in this case is whether the P. V. leather cloth was taxable or not during 1960-61. It is an admitted position that vide notification dated 28/2/61 leather cloth was exempted from tax and by another notification dated 1. 7. 58 all varieties of textile (other than pure silk) made wholly or partially of cotton were exempted from tax. Appendix 5 of the Central Excise Manual at serial No. 14 defined the term "cotton fabric" which includes leather cloth inferior or imitation leather cloth ordinarily used in book binding, tracing paper etc. THE assessee has shown the attestation from the Superintendent Excise and Taxation, Bulsar that the leather cloth manufactured by the Dharampura Leather Cloth Co. , Dharampura is assessed to excise and additional excise duty as cotton fabric. THE Government Advocate has also conceded to this point. Since all the varieties of textile were exempted from the sales tax vide notification dated 1. 7. 58 and the P. V. Leather cloth falls within the definition of textile it would be therefore just and proper that no sales tax is assessed on the sale of P. V. leather cloth. The revision is hereby accepted and the order of the Dy. Commissioner dated 9/11/62 and of the Asst. Sales Tax Officer dated 3/4/62 are hereby set aside and the case is remanded for fresh assessment in view of the observations made above. .;