STATE OF MADHYA PRADESH Vs. ABDEALI

JUDGEMENT

(1.) THE following Judgment of the court was delivered by

(2.) THIS is an appeal by special leave from the judgment and order of the High court of Madhya Pradesh dated 14/12/1959, by which the said High court quashed an assessment of sales tax made against the respondent for the assessment year 1956-57. The appellant before us are the State of the Madhya Pradesh, the Commissioner of Sales Tax, Madhya Pradesh. 'and the Sales Tax Officer, Circle No.2, Indore.

(3.) THE High court accepted the petition of the respondent and held that the respondent's contention that hand-made shoes, chappals and footwear purchased by him directly from the manufacturer outside the State and imported by him for sale were entitled to exemption under the notification dated 28/01/1956, must prevail. THE High court said: 'What that notification does is to exempt from sales tax the sale of hand-made chappals shoes, footwear 'and country shoes if the price of the article sold does not exceed Rs. 12.80 and if it is sold by the manufacturer or any member of his family. It makes no difference whether the sale is by the manufacturer within the State directly to the purchaser or whether it is by the manufacturer outside the state to the importer who then sells it to the purchaser. THE notification is, no doubt, not clearly worded. x x x x x x THE notification has to be read in consonance with the provisions of Article 301 of the Constitution. So read, it must be held that the exemption applies to hand-made shoes, chappals etc., whether made within or outside the State if the other conditions mentioned in the notification are satisfied.' Accordingly, the High court quashed the assessment dated 25/03/1958, and directed the Sales Tax Officer to make a fresh assessment in the light of the decision of the High court.