COMMISSIONER OF SALES TAX Vs. IRFAN AND CO

JUDGEMENT

(1.) THE Board of Revenue, Madhya Pradesh, has referred the following questions at the instance of the Revenue under Section 44 of the M. P. General Sales Tax Act, 1958 :

(2.) THE assessment in question relates to two periods, namely, March 9, 1977 to December 31, 1977 and January 1, 1978 to December 31, 1978. The licensee is a dealer in mahul patta. For the two periods aforesaid, he had taken on contract from the State Government the right to collect mahul patta from the forest. He paid sales tax at the time of purchase to the State Government and sold the same partly inside the State and partly in inter-State trade. In regard to sale made in the course of inter-State commerce, he claimed exemption under Notification No. 2353-1765-V-SR dated October 27, 1959 issued by the State Government under Section 8 (5) of the Central Sales Tax Act, 1956 (for short "the Act" ). The assessing officer rejected this contention and assessed the Central sales tax. The Board in second appeal set aside that part of the assessment order. It is in this background that a reference was sought and made.

(3.) SECTION 8 of the Act deals with rates of tax on sales in the course of inter-State trade or commerce. Clause (a) of Sub-section (5) of Section 8 reads thus :