COMMISSIONER OF SALES TAX Vs. DAYAL SINGH KULFIWALA

JUDGEMENT

(1.) PREM PRAKASH, J. This rule in revision has been obtained by the Commissioner, Sales Tax, U. P. , Lucknow, under section 11 (1) of the Act to set aside the order of the Judge (Revisions) exempting the turnover of kulfi and lassi in terms of the notification dated 31st March, 1956, issued by the State Government in exercise of the powers conferred by section 4 of the U. P. Sales Tax Act. In List II at serial No. 10, "milk and milk products such as chhena, dahi, khoa, butter and cream but excluding (1) products sold in sealed containers; and (2) sweetmeats" were exempted from payment of tax. The item at serial No. 10 is illustrative and not exhaustive. Kulfi and lassi in the common parlance and having regard to their components are milk products and, therefore, they fall within the purview of the exemption given by the State Government by virtue of the notification dated 31st March, 1956.

(2.) IT so happened that on 1st December, 1973, the State Government in exercise of the powers under sub-section (2) of section 3-A of the U. P. Sales Tax Act declared that the turnover in respect of the goods mentioned in the schedule shall be liable to tax at all points of sale at the rate specified against each in column III of the said schedule. In the schedule at serial No. 17 there is the item "hot and cold drinks, ice-cream, kulfi, milkshake, lassi, beverages, squashes or sharbat, when served to customers". By this notification issued in exercise of the powers under sub-section (2) of section 3-A, the turnover of the aforesaid goods was made taxable when such goods were served to customers.

(3.) FOR these reasons, I must agree with the view taken by the Judge (Revisions ).