A SAMAD ALI ALBULUSHI Vs. UNION OF INDIA

JUDGEMENT

(1.) The Appellate Tribunal, Sales Tax, Delhi has referred for the opinion of this Court on following two questions :

(2.) The assessee is M/s Kanji Mal & Sons and the assessment year is 1969-70. The controversy pertains to the interpretation of the term 'ornaments'. as mentioned in Notification No. F. 4(87)/44-Fin. (E) (ii) dated 30.6.1966 issued by the Chief Commissioner under the Bengal Finance (Sales Tax) Act, 194 as extended to Delhi whereby gold ornaments were made excisable to sales tax at the rate of 2%.

(3.) The Assessing Authority came to the conclusion that this term 'ornaments' has reference to those made of gold only. In case any stones, precious or otherwise are studded in ornaments, they, it was observed, can be treated as 'jewellery' and not 'ornaments'. In doing so, the Assessing Authority relied upon its earlier decision for the assessment year 1968-69. The assessing officer mentioned in his order that in the year 1968-69 assessee's sales were taxed at 5 per cent and appeal was rejected by the Assistant Commissioner hence the taxable sales shown by the dealer at 2 per cent will be taxed at the rate of 5 per cent.