SHYAM LAL SUNDER LAL Vs. LT GOVERNER DELHI

JUDGEMENT

(1.) This order will dispose of Sales-Tax References Nos. 1, 2 and 3, 1976 as they arise out of a consolidated order of the Additional District Judge and a common question of law has been referred for opinion of this Court. The assessment years, in question, are 1957-58, 1958-59 and 1959-60.

(2.) The petitioner-firm was registered with the Sales-Tax Department under the Bengal Finance (Sales-Tax) Act. 1941 (hereinafter called "the Act") as applicable to the Union Territory of Delhi. The petitioner surrendered its certificate for cancellation of the same on the plea that the goods dealt in by it were exempt from sales tax w.e.f. 14-12-1957 under Entry No. 17 of the 2nd Schedule referred to in section 6 of the Act. On inquiries it was found that the petitioner was dealing in pure silk fabrics also and as such this plea of the petitioner .for cancellation of the registration certificate did not find favour with the assessing authority. The said assessing authority by order dated 2-8-1960 found that the petitioner was liable to pay sales tax in respect of turnover of sale of pure silk sarees which were not exempt from sales-tax under Entry No. 17.

(3.) Dissatisfied with the aforesaid order of the assessing authority the petitioner went up in revision. In revision it was contended that the petitioner was dealing in art silk and fabrics admixed with zari and meena which could not be treated as pure silk fabrics. The contention of the petitioner was not accepted and the revision petition was dismissed by the Commissioner by his order dated 10-3-1961. The petitioner filed a further revision before the Additional District Judge which also resulted in dismissal by order dated 7-6-1967.