COMMISSIONER OF SALES TAX Vs. HARICHAND CHANDULAL

JUDGEMENT

(1.) THIS is a reference under Section 44 of the Madhya Pradesh General Sales Tax Act, 1958, at the instance of the Commissioner of Sales Tax, Madhya Pradesh. The question which we are required to answer is:-Whether 'khowa' comes under the word 'curd' in item No. 21 of Schedule I to the Act and is, therefore, exempt from tax under the Act?

(2.) THE material facts are that the assessee Harichand Chandulal of Seoni is a dealer in grains, oil-seeds and "khowa". For the assessment period from 12th November, 1958, to 31st October, 1959, the Sales Tax Officer imposed on the assessee purchase tax under Section 7 of the Act on sales of "khowa" of the value of Rs. 27,536-5-9. The assessee's contention was that as under entry No. 21 of Schedule I to the Act "khowa" was exempted from tax under Section 10 (1) of the Act, no purchase tax could be imposed on him on the sales of "khowa". This contention was negatived by the Sales Tax Officer as well as in first appeal against the order of the Sales Tax Officer. It was, however, accepted in second appeal by the Sales Tax Tribunal taking the view that "khowa" is "curd"; and that, therefore, it falls within the exemption granted by entry No. 21 of Schedule I.

(3.) ENTRY No. 21 of Schedule I to the Act, as it stood at the material time, ran as follows:-