LAXMI STORES Vs. SALES TAX OFFICER

JUDGEMENT

(1.) This is a petition under Article 226 of the Constitution. The question involved is as to whether woollen pullovers and cardigans are covered by the entry "hosiery"' or they are "woollen goods". The assessment year involved is 1972-73. The petitioner, M/s. Laxmi Stores, carried on business in purchase and sale of woollen cardigans, pullovers, topas and mufflers, etc. For the assessment year 1972-73, the assessee's account books were accepted and the net turnover as declared was accepted. But, in respect of sales of woollen pullovers and cardigans the assessing authority applied a rate of 6 per cent treating them to be "woollen goods" under entry 106 of Notification No. ST-II-332/X-1012-1971 dated 15th November, 1971, whereas the claim of the assessee was that woollen cardigans and pullovers were covered by entry 1 "hosiery of all kinds other than that made of pure cotton" under Notification ' No. ST-II-334/X-1012-1971 dated 15th November, 1971, liable to be taxed at the rate of 31/2 per cent. The petitioner feels aggrieved with this assessment order and has prayed for a writ of certiorari for quashing the same and also for a writ of mandamus directing the respondents not to treat pullovers and cardigans as woollen goods.

(2.) Before adverting to the submissions made before us on behalf of the petitioner it would be useful to refer to the legislative history of the relevant entries and also the provisions of the U.P. Sales Tax Act. Section 3 of the Act deals with liability to tax while Sections 3-A, 3-B, 3-F and 4 are concerned with payability of tax. Section 3-A as inserted by the Amendment Act of 1948 empowers the Provincial Government by notification in the official Gazette to declare the point and the rate at which the proceeds of sale of any goods or class of goods were to be taxed. It is not necessary to mention the various amendments which this provision has undergone in regard to the point and rates at which and the class of goods which are liable to be taxed. The first notification that was issued under Section 3-A of the Act was No. 117 dated 8th June, 1948, and entries 3 and 4 thereof read us under :

(3.) Woollen goods and knitting wool.