AGRAWAL TYRE STORES Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) THESE three references under Section 44 (1) of the M. P. General Sales Tax Act, 1958 (hereinafter called the Act), relate to the same assessee-applicant for the assessment years 1959-60, 1960-61 and 1961-62 respectively and the question of law is one and the same arising under similar circumstances in each of the three years. Hence we propose to dispose of the same by a common order.

(2.) THE question of law raised in these references is : Whether sales of rubber used for retreading of tyres are covered under entry 36 of Part II of Schedule II of the Madhya Pradesh General Sales Tax Act, 1958 ?

(3.) IN order to appreciate the scope of the question, it is not only profitable but necessary to state briefly the admitted facts and circumstances that gave rise to the legal question. The applicant-assessee, M/s. Agrawal Tyre Stores, Indore, is a registered dealer under Clause (m) of Section 2 of the Act selling tyres, tubes, motor parts and rubber used for retreading of old tyres. The Sales Tax Officer, who originally assessed the applicant-dealer, levied tax at 4 per cent on the turnover of sales of such rubber under the residuary entry, namely, Part VI of Schedule II, on the assumption that the commodity was not covered by any specific entry in Schedule II. Notices in form No. XVI were issued in respect of the assessment years in question for revising the assessments made earlier under Section 19 (1) of the Act on the ground that there was underassessment in each of the- years in question as tread rubber should have been assessed at 7 per cent instead of at 4 per cent. The assessee objected to the revision of the assessment on two grounds, namely: