STATE OF MAHARASHTRA Vs. RASIKLAL K. MEHTA

JUDGEMENT

(1.) THIS petition has been filed by the State of Maharashtra under Article 227 of the Constitution of India against the order passed by the Metropolitan Magistrate, 25th Court, Mazgaon on Nov. 5, 1976, staying the prosecution until the assessment proceedings were finally decided.

(2.) ONE firm styled as Kirtilal Kalidas and Co. was doing business in import and export of diamonds. The firm was registered with the Sales Tax Department.

(3.) DURING the period between Oct. 14, 1970 and March 1972 the firm of Kirtilal Kalidas and Co., effected certain transactions of sale of diamonds to the tune of Rs. 17,41,426 and they submitted their returns in respect of these sales along with Form No. 16 issued by M/s. India Gems of accused No. 6, On the basis of this Form they claimed exemption from sales tax on the above transactions. That claim was at first allowed.