COMMISSIONER OF SALES TAX Vs. DAULATRAM DULICHAND

JUDGEMENT

(1.) THIS is a reference under Section 44 of the Madhya Pradesh General Sales Tax act, 1968, by the Sales Tax Tribunal at the instance of the Commissioner of Sales tax. The question which has been referred to this Court for decision is:

(2.) IN order to appreciate the facts and circumstances in which the reference has been made it is necessary first to refer to the relevant provisions of the Madhya bharat Sales Tax Act, 1960 (hereinafter referred to as the Act) and of the Rules made thereunder (hereinafter referred to as the Rules) Under Section 4 (2) of the act no tax was payable on the sale of goods specified in the second column or schedule I "on conditions mentioned in column three" of that Schedule Under Subsection (3) the Government was given power to amend by a notification Schedule i and exempt from tax the sale of any goods or class of goods or any person or class of persons on such conditions and on payment of such fee as may be specified in the notification. On 15th March 1955 the Madhya Bharat Government issued a notification in the exercise of the powers conferred by Section 4 (3) of the act exempting from sales tax sales of bullion on the condition of the importer of bullion paving a fee of four annas per cent on the imported bullion. That notification was as follows:. . (VERNACULAR MATTER OMMITED ). . Rule 11 of the Rules which dealt with the matter of exemption under Section 4 was in the following terms:

(3.) THE assessee M/s. Daulatram Dulichand of Ratlam, a dealer in bullion, obtained under Rule 11 (c) an exemption certificate for the year 1958-89 by paying the prescribed fees on the actual sale of bullion of the value of Rs. 2,82,858 during the year 1957-68. The assessee's sale of bullion in 1968-59, however, exceeded the amount of Rs. 2,82,858 by Rs. 61,000. The sales tax authorities took the view that as the certificate granted to the assessee under Rule 11 (c) for the year 1958-59 exempted the turnover of sales of bullion up to the amount of Rs. 2,82,858, the assessee was liable to pay sales tax on the excess turnover of the value of Rs. 61,000. The assessee, however, contended that the excess turnover of Rs. 61,000 in 1958-59 was also exempt from sales-tax and that on that amount he was only liable to pay a "fee" at the rate of four annas per cent. This contention was ultimately accepted by the Sales Tax Tribunal.