FIRM MURLIDHAR BRIJMOHAN OF JHUNJHUNU Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THIS is an application by firm Murlidhar Brijmohan and four other firms dealing in ground-nut oil under Art. 226 of the Constitution against the State of Rajasthan and three officers of the Sales Tax Department.

(2.) THE question arising in this petition lies in a small compass. THE applicants are carrying on trade in ground-nut oil. THEy were asked by the various officers of the Sales Tax Department to submit the accounts of their dealings in ground-nut oil in order that sales tax may be assessed on them. THEir contention is that ground-nut oil is exempted from sales tax as it is an edible oil and all edible oils are exempt from sales tax according to item 17 of the Schedule to the Rajasthan Sales Tax Act. But it seems when they wanted to raise this point before the various Sales Tax Officers they were met by a confidential circular of the Sales Tax Commissioner to all Sales Tax officers in which the Officers were told that ground-nut oil and betel leaves were commodities liable to sales tax. Consequently, in the case of the applicants sales tax on the sales of ground-nut oil has already been levied while in the case of three of the applicants notice has been given and sales tax will be levied in due course according to the circular, referred to above.