COMMISSIONER OF TRADE TAX Vs. GITA TRADERS

JUDGEMENT

(1.) THIS revision is at the instance of Commissioner of Sales Tax and in the memo of revision following question of law involved in the revision has been mentioned: Whether on the facts and in the circumstances of the case the Tribunal is legally justified to knock off the tax on Cotton coated fabrics cell?

(2.) HEARD learned Counsel for the parties and perused the record. The dispute relates to the assessment year 1986 -87. The opposite party carried on the business of purchase and sale of cotton coated cloth and plastic film sheets, etc. The assessing authority vide its order dated March 30, 1990 rejected the contention of the dealer that cotton coated fabrics is not taxable on the ground that it contained less than 40 per cent of cotton. The assessing authority granted exemption on the same commodity, which were not imported against form XXXI. However, it taxed the commodity in question, which were imported against form XXXI treating it to be taxable commodity. In appeal the Assistant Commissioner (Judicial), Trade Tax, set aside above part of the assessment order. This order has been confirmed by the Tribunal vide order under revision.

(3.) THE Governor of Uttar Pradesh issued a notification under Section 4(1) of the U.P. Sales Tax Act, 1948 Notification No. 4064 dated November 25, 1958, granting exemption to the goods unconditionally from payment of tax under U.P. Sales Tax Act with effect from July 1, 1958. The said notification contained list of three items namely, 'sugar', 'cigars' and 'textiles'. The relevant portion relating to textiles which includes cotton fabrics of all varieties reads as under: