COMMISSIONER OF SALES TAX Vs. BHARAT STORES

JUDGEMENT

(1.) THIS is a reference by the Board of Revenue, Madhya Pradesh, under Section 44 (1) of the Madhya Pradesh General Sales Tax Act, for our opinion on the following questions of law :

(2.) BRIEF facts, as stated by the Board of Revenue, are as follows : The assessee deals in hardware goods, including G. I. pipes, hose and rubber pipes. For the accounting years 1965-66 and 1966-67 pipes and pipe fittings were assessed to tax at 7 per cent under entry 1, Part VI, of Schedule II, appended to the M. P. General Sales Tax Act. The assessing authority had noted that these pipes did not fall under the category of sanitary pipes and pipe fittings.

(3.) THE case was reopened by the assessing authority under Section 19 (1) of the Act on the ground that the sale had been under-assessed or had escaped assessment or had been assessed at a lower rate. After reopening the case the assessing authority passed the order holding that the pipes and pipe fittings in question were liable to be taxed at higher rate, i. e. , at 10 per cent or 11 per cent under entry 56 of Part II of Schedule II.