COMMISSIONER OF SALES TAX Vs. BHARAT KALA BHANDAR

JUDGEMENT

(1.) THE judgment in this Miscellaneous Civil Case will also govern the disposal of Miscellaneous Civil Case No. 298 of 1969 : (The Commissioner of Sales Tax, Madhya Pradesh v. Punjab Ginning and Pressing Factory, Khandwa ). Both these are references raising the same point. The question referred is: "whether hessian is covered by the term 'cloth' used in item No. 6 of Schedule I to the State Act and, therefore, exempt from tax ?

(2.) THIS court had in a Division Bench case, Commissioner of Sales Tax, M. P. v. New Bhopal Textiles Ltd. Bhopal 1970 M. P. L. J. 607 held that the Word "cloth" was wide enough to include hessian cloth, and hessian cloth would therefore be exempt. The State Government have since passed the M. P. General Sales Tax (Amendment and Validation) Act, 1971, [1971] 27 S. T. C. Statutes 93. Section 9 of this Act is as follows :-

(3.) BY the aforesaid amendment hessian cloth has been clearly exempted from entry No. 6 of Schedule I and consequently is not exempt from sales tax. Therefore, our answer to the question referred is that "hessian is not covered by the term 'cloth' used in item No. 6 of Schedule I to the State Act and, therefore, is not exempt from sales tax. " Parties will bear their own costs in both these references.