JAMUNA Vs. STATE OF ORISSA

JUDGEMENT

(1.) THE Member, Additional Sales Tax Tribunal, has stated these cases and referred the following common question for opinion of the court at the instance of the assessee :

(2.) THE assessee is a dealer in mill-made and handloom cloths. The relevant periods are 1973-74 and 1974-75. The assessee commenced business from 1st May, 1972, and suffered an assessment under section 12 (5) of the Act for the year 1972-73. During the periods in question it continued to be an unregistered dealer notwithstanding accrual of liability in the earlier assessment year. During the assessment proceedings the Sales Tax Officer took the view that mill-made cloth when fitted with chumki became "embroidery" and, though mill-made cloth as such was free to tax, mill-made cloth fitted with chumki became liable to be taxed as embroidery articles. The Member, Additional Sales Tax Tribunal, while disposing of the second appeals, placed reliance on a decision of the Gujarat High Court in the case of Pravin Bros. v. State of Gujarat [1964] 15 STC 478, where it has been held :