STATE OF GUJARAT Vs. BHAGWATI GENERAL AGENCY

JUDGEMENT

(1.) THE Gujarat Sales Tax Tribunal has referred the following question of law for our decision on being moved by the State of Gujarat under section 69 of the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the Act" ). " Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that yeast sold in the form of powder and granules by M/s. Bhagwati General Agency (Import) of the value of Rs. 26,322 during the assessment year 1974 is a chemical and is covered by the expression 'dyes and chemicals' used in entry 9 in Schedule II, Part A, to the Gujarat Sales Tax Act, 1969 or whether the sales thereof were rightly held to have been taxed under the residuary entry 13 in Schedule III to the said Act by the learned Assistant Commissioner of Sales Tax ?"

(2.) A few facts giving rise to the present reference need be stated. The opponent is a registered dealer and it carries on the business of reselling chemicals, provisions, etc. It purchased and sold yeast in the form of dry powder and granules to the extent of Rs. 26,332 during the period from 1st January, 1974 to 31st December, 1974. A question arose before the Sales Tax Officer as regards the rate of tax payable on the sale of the said yeast. The opponent contended that yeast would fall within entry 9 of Schedule II, Part A to the said Act and sale thereof would, therefore, be chargeable at 3 per cent, while Revenue contended that the sale of yeast would covered by residuary entry being entry 13 of Schedule III to the said Act and, therefore, sales of yeast would be chargeable to sales tax at 5 per cent and general sales tax at 3 per cent.

(3.) ON being moved by the State to refer the question of law arising from its decision, the Tribunal has referred the aforesaid question for our decision.