COMMISSIONER OF SALES TAX Vs. KISHANLAL AND CO.

JUDGEMENT

(1.) THIS is a reference made by the Tribunal under section 44(1) of the M.P. General Sales Tax Act, 1958, and the following question of law has been referred by the Tribunal for answer of this Court :

(2.) THE assessee is a handloom cloth dealer. The assessing officer assessed the entry tax liability to the extent of Rs. 36,309.70 and also imposed a penalty of Rs. 200. The assessing officer also imposed penalty of Rs. 775 under section 17(3) and Rs. 600 under section 43(1) of the Act. Aggrieved against the order of the assessing officer, the assessee preferred an appeal before the CST(A) and the CST(A) maintained the liability of tax but set aside penalty.

(3.) WE have heard the learned counsel for the parties and perused the records. A notification under section 10 read with entry 51 of Schedule I was issued in which khadi and some other items has been exempted from payment of entry tax. The learned counsel for the Revenue submitted that this entry as well as the notification dated March 8, 1982 will not cover the khadi cloth. We have considered the submissions of the learned counsel and the notification issued on March 8, 1982, which is relevant for our purposes, reads as under :