COMMISSIONER OF SALES TAX Vs. SULTAN SHEV CO

JUDGEMENT

(1.) This reference under section 61(1) of the Bombay Sales Tax Act, 1959, arises out of determination proceedings under section 52(1)(e) of the said Act.

(2.) The respondents, who are registered dealers under the said Act, sold five kilograms of shevaya (that is, vermicelli) on 8th August, 1967, at the rate of Re. 1.25 per kilogram. By their application dated 13th September, 1967, made under the said section 52(1)(e), the respondents stated that vermicelli so sold by them was prepared from maida purchased by them from Shetkari Sahakari Sangh Ltd. and the said commodity was exempted from tax under Schedule A to the said Act. After a personal hearing, the respondents also set out their case in writing by their letter dated 14th November, 1967, in which they clarified that the exemption they sought was under entry 10 of Schedule A to the said Act and that, in the alternative, they claimed exemption under entry 5 of the said Schedule A. The said entry 10 of Schedule A, as in force at the relevant time, was as follows :

(3.) The Commissioner of Sales Tax by his order dated 16th April, 1968, held that :