COMMISSIONER SALES TAX Vs. ARORA MATERIAL STORE

JUDGEMENT

(1.) The Commissioner of Sales Tax has approached this Court in the present revision on account of the decision by the Sales Tax Tribunal, affirming that of the Assistant Commissioner (Judicial), Sales Tax, that cotton-coated fabric is unconditionally exempt from the levy of sales tax under the U. P. Sales Tax Act (for brief, the Act) on account of Notification No. ST-4064/ X-960(4)58 dated 25th November, 1958, issued under Section 4 of the Act. The assessing authority has assessed the turnover of the dealer-opposite party of the commodity in question as an unclassified item on its view that it fell outside the scope of that notification.

(2.) The year is 1971-72. There is no dispute that the commodity, which is in issue, has as its base cotton fabric. According to the dealer, it is nothing but cotton fabric which has been impregnated with preparations of cellulose derivatives or other artificial plastic materials. The assessing authority noticed in its order that even though the commodity had been described as coated fabric in the document relating to its purchase by the dealer, it was in reality leather cloth. The Assistant Commissioner (J.), Sales Tax, however, proceeded upon the assumption that it was cotton-coated cloth. That was the basis on which the controversy was decided by the Sales Tax Tribunal as well. In fact, before the Tribuaal it was conceded by the learned counsel appearing for the Commissioner that cotton-coated fabric was one such variety of the fabrics which was exempt. In the memorandum of revision filed in this Court as well, the grievance of the petitioner is that the Tribunal was not justified in holding that cotton-coated fabrics were included in the category of cotton fabrics.

(3.) Under the notification dated 25th November, 1958, an unconditional exemption from payment of tax under the Act was given to the commodities mentioned therein with some exceptions. Entry No. 3 of the list of items mentioned in the notification is as follows: