V PATEL DINESHKUMAR Vs. STATE OF GUJARAT

JUDGEMENT

(1.) THE question referred to this Court by the Gujarat Sales Tax Tribunal, Ahmedabad, under section 69 (1) of the Gujarat Sales Tax Act, 1969, hereinafter referred to as "the Act" is the following : " Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that dried bits of chicory roots would not be covered by entry 23 or entry 8 of Schedule I to the Gujarat Sales Tax Act, 1969 ?"

(2.) THE applicant-firm which carries on the business of reselling chicory roots and oil cakes is registered as a dealer under the Act. During the assessment for samvat years 2034 and 2035 the concerned Sales Tax Officer, Ahmedabad, under section 46a of the Act, noticed that the applicant was not paying any tax on the sales of chicory roots inasmuch as it treated the same as tax-free goods. THE account books of the applicant-firm for samvat years 2034 and 2035 were seized. It was contended by the applicant before the Assistant Commissioner of Sales Tax (Appeals), Range 3/9, Ahmedabad, that chicory roots were covered by entry 23 of Schedule I or entry 8 of the same Schedule and, therefore, they were exempt from payment of sales tax. THE Assistant Commissioner, however, did not accept this submission and assessed the applicant by holding that the disputed sales were taxable at the relevant rates. Penalty was also imposed under section 45 (6) of the Act read with section 9 (2) of the Central Sales Tax Act, 1956. THE appeal preferred by the applicant against the said assessment orders before the Deputy Commissioner of Sales Tax, Division II, Ahmedabad, failed. THE applicant, therefore, preferred two revision applications before the Sales Tax Tribunal at Ahmedabad, which after considering several judgments of the Supreme Court and this Court, held that chicory roots were not exempt from payment of tax as they were not covered by entries Nos. 8 and 23 as alleged. However, the Tribunal was pleased to remit the penalty and retained it to the extent of 40 per cent only. THE applicant submitted Reference Applications Nos. 5 and 6 of 1985 for referring two questions to this Court for its opinion : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that dried bits of chicory roots would not be covered by entry 23 of Schedule I to the Gujarat Sales Tax Act, 1969 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that dried bits of chicory roots would not be covered by entry 8 of Schedule I to the Gujarat Sales Tax Act, 1969 ?" Instead of referring these questions of law to this Court, the Tribunal, rightly consolidated the issues and framed a single question of law, as stated earlier.

(3.) WE, therefore, hold that the Tribunal was justified in holding that dried bits of chicory roots would not be covered by entry No. 23 or entry No. 8 of Schedule I to the Gujarat Sales Tax Act, 1969, and we answer the reference accordingly.