YASIN BONE MILLS Vs. STATE OF U P

JUDGEMENT

(1.) These two revisions, filed by the assessee, may conveniently be disposed of together. They relate to the assessments for 1973-74 and 1974-75 under the Central Sales Tax Act. The assessee carries on business in manufacture and sale of crushed bones. The accounted version was accepted by the assessing authority. The assessee's claim was that crushed bones come in the category of fertilisers, the turnover of which is exempt from sales tax, and so no tax could be imposed on the assessee. This contention was not accepted by the assessing officer nor by the appellate and the revising authorities.

(2.) The question that thus falls for consideration is as to whether crushed bones come within the category of fertilisers. It may be noted that the crushed bones which the assessee manufactures and sells range in size between |" to f". In other words, as I would have occasion to show later, the assessee does not deal in bone-meal but deals in crushed bones.

(3.) Entry No. 11 of the First Schedule under Section 3-A of the U. P. Sales Tax Act makes sales of bones if sold to consumer liable to tax. So far as fertilisers are concerned they are exempt from tax, the first notification being ST-3470/X dated 16th July, 1956. That was a notification issued under Section 4 of the Act and fertilisers, other than chemical fertilisers, were exempted from payment of sales tax. By a subsequent Notification No. ST-1805/X-900(71)/69 dated 10th March, 1970, with effect from 1st March, 1970, the sale of chemical fertilisers was also exempt from payment of tax under the Act.