COMMISSIONER OF SALES TAX Vs. DAMODAR DASS

JUDGEMENT

(1.) THIS case and the connected cases were listed again today for further hearing. After hearing the counsel for the parties we are now giving this judgment.

(2.) THIS is a reference under section 11(3) of the U.P. Sales Tax Act by the Commissioner of Sales Tax, U.P., Lucknow. It relates to the assessment year 1956-57. The connected cases are also references which relate to the assessment years 1957-58, 1965-66 and 1966-67. A common question of law has been referred in all these cases. The question is :

(3.) NOW , in the question which has been referred by the revising authority, there is reference to the notification of 25th November, 1958. That notification is under section 4(1)(a) and unconditionally exempts from the payment of tax the turnover of certain commodities including sugar containing more than ninety per cent. of sucrose, but excluding khandsari sugar, sugar candy, batasha, cooked food, confectionary and sweetmeats. It is difficult to understand as to how the taxability or otherwise of kulia khand depends on this notification. In the first place, the notification seeks to exempt rather than to tax certain commodities. Secondly, this notification takes effect from 1st July, 1958. It can have no application to the assessment years 1956-57 and 1957-58. Accordingly, our answer to the question so far as it relates to these assessment years is that kulia khand is not taxable under the notification of 25th November, 1958.