COMMISSIONER OF SALES TAX GUJARAT STATE Vs. INDIA CUTLERY STORES SURAT

JUDGEMENT

(1.) THE Gujarat Sales Tax Tribunal (hereinafter referred to as "the Tribunal") has referred to this court under section 61 of the Bombay Sales Tax Act, 1959 (hereinafter referred to as "the Act"), the following question of law arising out of its judgment and order dated 31st December, 1968 :- " Whether on the facts and in the circumstances of the case the Bengal light matches and paper caps are 'fireworks' covered by entry 44e of Schedule C to the Bombay Sales Tax Act, 1959, or covered by the residuary entry 22 of Schedule E to the said Act ?"

(2.) THE facts giving rise to this reference may be briefly stated : THE assessee is a firm carrying on business as a dealer in sewing thread, cutlery, fireworks, Bengal light matches, paper caps etc. THE assessee was assessed to sales tax for the period Kartak Sud 1 of S. Y. 2019 to Aso Vad 30 of S. Y. 2020. THE assessee had undertaken the sales of Bengal light matches and paper caps during the said assessment period and the Sales Tax Officer assessed sales tax on the sales of those items at the rate specified in entry 44e of Schedule C to the Act holding that the said two articles were "fireworks" within the meaning of the said entry. THE assessee being aggrieved by the said order of assessment, preferred an appeal to the Assistant Commissioner of Sales Tax and contended that the said two articles were not fireworks within the meaning of entry 44e of Schedule C but were covered by the residuary entry 22 of Schedule E and were liable to sales tax at the rate specified in the latter entry. THE Assistant Commissioner of Sales Tax negatived the contention of the assessee and dismissed the appeal. THE assessee thereupon preferred a second appeal before the Tribunal which allowed the appeal holding that the said two articles were not covered within the meaning of the word "fireworks" and the sales of those two items were liable to be taxed under the residuary entry 22 of Schedule E.

(3.) THE relevant portion of entry 44e of Schedule C to the Act reads as under : " ----------------------------------------------------------------------- Sr. Description of goods. Rate of sales tax. Rate of purchase tax. No. 1 2 3 4 ------------------------------------------------------------------------ 44e Fireworks Ten naye paise Ten Naye paise in the rupee. in the rupee. -----------------------------------------------------------------------"