COMMISSIONER OF SALES TAX Vs. PHOOLCHAND ONKARLAL

JUDGEMENT

(1.) BY this reference under Section 44 of the M. P. General Sales Tax Act, 1958, the Board of Revenue has, at the instance of the department, referred the following question of law to this Court for its opinion :

(2.) THE material facts giving rise to this reference briefly are as follows:

(3.) HAVING heard the learned counsel for the parties, we have come to the conclusion that this reference must be answered in favour of the assessee. The notification dated 31st March, 1964, under which exemption is claimed by the assessee, provides for exemption where cooked food excluding sweetmeats, cakes, pastries, biscuits, chocolates, toffees, lozenges and peppermint drops is prepared and sold by tandurwalas, dhabawalas, lohwalas, khonchawalas and halwais. The Board has found that the assessee was at the material time a halwai. The goods in respect of which exemption is claimed by the assessee fall within the class of goods for which exemption is granted by the aforesaid notification. The learned counsel for the department, however, contended that as the assessee had employed servants for preparation of namkin, the goods sold by the assessee would not be exempt from tax as provided by the notification. The contention cannot be upheld. The Board rightly observed that the notification cannot be held to apply only to a self-employed halwai. The notification would also apply to the case of a halwai who got "namkin" prepared by others on payment of labour charges. The learned counsel for the department was unable to point out any authority to the contrary.