GANGA ENTERPRISES Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THIS is a sales tax reference under section 44 (1) of the M. P. General Sales Tax Act, 1958 (hereinafter referred to as "the Act"), at the instance of the applicant/assessee - M/s. Ganga Enterprises, Katni and the following question of law has been referred by the Board of Revenue for answer of this Court, which reads as under :

(2.) THE applicant/assessee deals in agarbattis at Katni. The assessee was assessed to sales tax under the Act for the period from April 28, 1980 to March 31, 1981, by the Assistant Sales Tax Officer, Katni, vide his order dated August 28, 1982 (annexure B ). The assessee claimed exemption on account of purchases of packing material from registered dealers worth Rs. 57,302. His contention was that this packing material was that this packing material was used for the packing of agarbattis for sale and he is entitled to a deduction under section 2 (r) (ii) of the Act. But this contention was not accepted by assessing authority in view of the Explanation below section 2 (o) of the Act, which was inserted with effect from September 1, 1976.

(3.) WE have heard the learned counsel for the Revenue as none has appeared on behalf of the assessee/applicant.