MANSATTA INDUSTRIES PVT LTD Vs. STATE OF GUJARAT

JUDGEMENT

(1.) At the instance of the assessee, the Gujarat Sales Tax Tribunal has referred the following question to us for our opinion under section 69(1) of the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the Gujarat Act") :

(2.) The facts leading to this reference are as under :

(3.) The Sales Tax Officer concerned had found those sales to be covered by entry 27 of Schedule II, Part A, to the Gujarat Act, and therefore, levied sales tax on those sales at the rate of 5 per cent under the said Act. However, on scrutiny of the assessment record of the assessee-company, the Assistant Commissioner of Sales Tax was of the opinion that the strips of copper in question having width from 1" to 4" could not be validity subjected to tax under entry 27 of Schedule II, Part A, to the Gujarat Act inasmuch as the said entry did not specifically mention or refer to strips as one of the articles included therein. In the view of the Assistant Commissioner, therefore, the disputed sales would fall within the terms of residuary entry 13 of Schedule III to the said Act, and therefore, the sales of copper strips were chargeable to sales tax at the rate of 5 per cent and general sale tax at the rate of 3 per cent. He, therefore, revised the order of the Sales Tax Officer after issuing show cause notice to the assessee-company in that behalf and after giving an opportunity of hearing.