MAFATLAL KANTILAL AND CO OIL MILLS Vs. STATE OF GUJARAT

JUDGEMENT

(1.) This is a reference under section 34(1) of the Bombay Sales Tax Act 1953 at the instance of Messrs. Mafatlal Kantilal & Co. Oil Mills the applicants herein. The period with which we are concerned is the period commencing from 1st November 1952 and ending with 31st March 1953. The applicants sold oil during this period to exporters in the State of Bombay. The sales were completed and the goods were delivered to the exporters in the State of Bombay. The applicants claimed a deduction in respect of these sales from their turnover in the assessment proceedings. The claim was made under clause (viii) of sub-rule (1) of rule 5A of the Bombay Sales Tax Rules 1946. The claim was rejected by the Sales Tax Officer by the assessment order passed by him on 27th August 1956. His order was confirmed in appeal by the Assistant Collector of Sales Tax by his order dated 29th July 1956. A revision application to the Additional Collector of Sales Tax Ahmedabad was dismissed by an order dated 22nd December 1959. The matter was carried further before the Sales Tax Tribunal but without success. The questions which we have been called upon to determine are the following:-

(2.) Rule 5A(1) (viii) of the Bombay Sales Tax Rules 1946 provides as under :-

(3.) The point in controversy between the parties is whether this sub-rule was in operation during the relevant period. By section 50 of the Bombay Sales Tax (No. 2) Ordinance 1952 (being Ordinance No. 111 of 1952) the Bombay Sales Tax Act 1946 as amended by the Bombay Sales Tax (No. 1) Ordinance 1952 (being Ordinance No. 11 of 1952) has been repealed with effect from the appointed day viz. 1 of November 1952. By sub-section (3) of the said section 50 it is inter alia provided as under :-