SHREERAM VASTRA BHANDAR Vs. SALES TAX OFFICER

JUDGEMENT

(1.) THE petitioner is a partnership firm having its head office at Raipur. It was sole distributor for the textile goods manufactured by the Bombay Dyeing and Manufacturing Co. Ltd. , Bombay, in that area. The petitioner-firm is a registered dealer under the Madhya Pradesh General Sales Tax Act, 1958 (hereinafter called the Act ). The relevant period for the purpose of this petition is 10th November, 1969 (Diwali), to 30th October, 1970 (Diwali ). Section 10 of the Act relates to tax-free goods and provides for exemption of sales tax on goods specified in the second column of Schedule I, subject to the conditions and exceptions set out in the corresponding entry in the third column thereof. We are concerned in the present case with entry 6 in Schedule I to the Act, which at the relevant time read as under : All varieties of cloth manufactured in mills or on power-looms or handlooms including processed cloth but excluding silk fabrics, articles made thereof and hessian cloth.

(2.) THE only question involved in this petition is whether stitched pillow covers of the Bombay Dyeing and Manufacturing Co. Ltd. sold by the petitioner-firm as its sole distributor fell within the ambit of the above-quoted entry 6 of Schedule I to the Act so as to be exempt from payment of sales tax under the Act.

(3.) THE material facts giving rise to this petition may now be stated. The petitioner claimed that stitched pillow covers sold by it were exempt from payment of sales tax under the above entry 6 in Schedule I to the Act. The sales tax department did not agree with the petitioner's contention and, therefore, a notice was issued to the petitioner to show cause why sales tax should not be recovered in respect of the sales of pillow covers made by it. After hearing the petitioner, the Sales Tax Officer, Raipur, by his order (annexure D) dated 6th December, 1975, rejected the petitioner's contention and held that stitched pillow covers sold by the petitioner were exigible to sales tax. Aggrieved by this order, the petitioner filed a revision to the Commissioner of Sales Tax under Section 39 of the Act. The Commissioner by his order (annexure F) dated 26th December, 1975, has upheld this part of the Sales Tax Officer's order and reached the conclusion that stitched pillow covers sold by the petitioner are not exempt from payment of sales tax. This writ petition has been filed seeking a writ to quash these orders passed by the Sales Tax Officer and the Commissioner of Sales Tax.