Vineet Kothari, J. - (1.) THESE revision petitions of the assessee filed against the order of Tax Board dated July 16, 2001 raise a short, but interesting question of law for consideration by this Court.
(2.) THE question is as to whether the metallic yarn produced and sold by the assessee during the period in question, namely, 1986 -87 to 1988 -89, is taxable at the rate of 1.5 per cent as "all kinds of man -made yarn whether synthetic or non -synthetic, cellulosic or non -cellulosic, blended or not and waste thereof", or is taxable at the rate of three per cent as "badla" under notification dated June 19,1967 (S. No. 130 of J. K. Jain's Book, Vol. 2). The said commodity "badla", though not a defined term, is used in the notification dated June 19, 1967 along with other items like gota, gota -kinari, salma and sitara. The said notification is reproduced hereunder: S. No. 130 : F.5(56)FDCT/67 -2 dated June 19,1967. -In exercise of the powers conferred by Section 8(5) of the Central Sales Tax Act, 1956, the State Government [.2.] hereby directs that the rate of tax payable under Clause (b) of Sub -section (2) of the said section by a dealer having his place of business in the State in respect of the sale by him from any such place of business of gota, gota -kinari, salma, sitara and badla in the course of inter -State trade or commerce shall be calculated at the rate of three per cent. This shall have immediate effect. Later on, these items were exempted from sales tax vide notification dated March 6, 1991 (S. No. 836 of J. K. Jain's Book Vol. 2). The assessing authority while passing the original assessment order did not impose any additional tax over 1.5 per cent, which was charged by the assessee from his customers and paid to the State. However, by resort to Section 12 of the Rajasthan Sales Tax Act, 1954 (for short, "the Act"), exercising its reassessment powers, the assessing authority imposed tax on sale of the aforesaid commodity, metallic yarn, at the rate of three per cent and the difference tax was imposed. The first appeal filed by the assessee was allowed by the learned Deputy Commissioner (Appeals) vide order dated November 30, 1994. The second appeal filed by Revenue before the Tax Board came to be allowed by the Tax Board by the impugned order dated July 16, 2001 and it was held by the Tax Board that the metallic yarn produced and sold by the assessee was taxable at the rate of three per cent as "badla" during the relevant period and not as "man -made yarn". Hence, these revision petitions at the instance of the assessee before this Court.
(3.) HEARD learned Counsel on both the sides and perused the record.;