STATE OF GUJARAT Vs. ANANTA MILLS LIMITED

JUDGEMENT

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

(2.) THIS appeal by special leave is directed against the judgment of the Gujarat High court in a Sales Tax Reference made to it by the Gujarat Sales Tax tribunal. Two questions were referred by the said tribunal to the High court `1. Whether in the facts and circumstances of the case, the purchase of the raw cotton by the applicant Mill could be said to have been intended for use in the production of cotton seeds for sale within the meaning of clause (ii) of rule 6 of the Bombay Sales Tax (Exemption, Set-off and Composition) Rules, 1954; 2. Whether the applicant Mill is entitled under rule 12(1) to a refund of the purchase tax paid by it.`

(3.) MR. Shroff, on the other hand, contends that the words `purpose specified in the said clause` only mean the purpose of producing any goods falling under the corresponding entry in column 2 of the Schedule, and he wants us to omit from consideration the words `for sale`. We agree with MR. Ganapathy Iyer that the purpose must be the purpose of producing goods-unginned cotton, ginned or pressed cotton, cotton seeds-for sale, and the words `for sale` must be given effect to.