COMMISSIONER OF SALES TAX THE GUJARAT Vs. SUMATILAL POPATLAL AND CO

JUDGEMENT

(1.) This is a reference under section 34(1) of the Bombay Sales Tax Act 1959 at the instance of the Commissioner of Sales Tax Ahmedabad. The opponents are dealers in hessian and have a place of business at Ahmedabad. The opponents effected a sale of hessian to Messrs. Bihari Mills Ltd. Ahmedabad under their bill dated 12th July 1958. On 11th August 1958 the opponents made an application under sec. 27 of the Bombay Sales Tax Act 1953 and requested the Additional Collector of Sales Tax Northern Division Ahmedabad to determine the question whether the said sale of hessian was exempt from tax under the Bombay Sales Tax Act 1953 In the said application it was stated that the hessian sold by them was not lying with them on 12th December 1957 and that it did not form part of any other dealers non-dutiable stock of hessian. In the statement of the case it has been mentioned that it was not lying with them on 15th December 1959. It is agreed by both the parties before us that the correct date is 12th December 1957 and not 15th December 1959 as stated in the statement of the case. The Additional Collector of Sales Tax by his order dated 19th August 1959 held that tax was payable on this sale of hessian at the rate of two naye paise in the rupee by way of sales tax and two naye paise in the rupee by way of general sales tax under the Bombay Sales Tax Act 1953 The matter was carried further before the Sale Tax Tribunal. The Sales Tax Tribunal by a majority judgment held that the aforesaid sale was exempt from payment of sales tax and general sales tax. The matter has now come up before us for the determination of the following question :-

(2.) The Bombay Sales Tax Laws (Special Exemptions) Act 1957 by sec.4 provides inter alia as under :-

(3.) The appointed day is the 13th of December 1957 The expression scheduled goods has been defined by sec. 2(7) of the Act to mean the goods specified in Schedule I. When we turn to Schedule I the following amongst other goods have been specified therein :-