COMMISSIONER OF SALES TAX U P Vs. SARIN TEXTILES MILLS

JUDGEMENT

(1.) -- These appeals by special leave are directed against the judgment of the High Court of Allahabad answering in favour of the assessee the following question referred to it under Section 11 of the U. P. Sales Tax Act, 1948 (for short called the Act):

(2.) M/s. Sarin Textile Mills, Agra is a manufacture of and dealer in "woollen carpet yarn", popularly known as "kati" . The relevant assessment years are 1959-1960 and 1961-62. The only dispute is whether such kati should be taxed as "yarn" at 3% or as woollen goods" at one anna per rupee, under the relevant notification issued under Section 3-A or as an unclassified item at 2% under Section 3 of the Act.

(3.) The Sales Tax Officer by his order dated 6-10-1965, regarded it as a 'kind if yarn' covered by Entry No. 4, Notification No.ST-907/X, dated 31-3 1956, and so taxed it at six pies per cent for the year 1961-1962 in view of subsequent notification St- 1365/X dated 1-4-1960.