PERFECT POTTERY CO Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THIS is a reference under Section 44 (1) of the Madhya Pradesh General Sales tax Act, 1958. The Sales Tax Tribunal (Board of Revenue, Madhya Pradesh), at the instance of the assessee, has referred the following two questions for our decision:

(2.) THE assessment period is from 1-10-1947 to 31 12-1948. The assessee-company is a manufacturer of certain stone-wares, junctions, gully traps, channels, etc. of various sizes and dimensions as also domestic pottery. After the c. P. and Berar Sales Tax Act, 1947, (hereinafter referred to as the Act) came into force, the assessee had supplied the goods manufactured by it to the tune of Rs. 2,50,514-3-9 in fulfilment of the contracts entered into prior to 1-6-1947. The assessee claimed that the abovesaid sale price could not have been included in the turnover in view of the proviso to Section 4 (1) of the Act. Exemption was also claimed in respect of sales amounting to Rs. 13,05,449-3-0 on the ground that the sales took place outside the State of Madhya Pradesh Both the contentions were negatived by the Sales Tax Authorities and the findings of those authorities were confirmed by the Sales Tax Tribunal The Tribunal has, however, referred the abovesaid questions for our decision.

(3.) THE Act came into force on 1st June, 1947. Section 4 of the Act provides that every dealer, whose turnover during the year preceding the commencement of the act. exceeded the taxable quantum, shall be liable to pay tax in accordance with the provisions of fee Act on all sales effected after the commencement of the Act the proviso to Section 4 (1), however, exempts certain sales effected after the commencement of the Act in execution of contracts entered into before the commencement of the Act. The proviso reads: