MOTIPUR ZAMINDARY COMPANY LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) Under Section 25(1) of the Bihar Sales Tax Act the Board of Revenue has stated a case on the following question of law :- Whether sugar-cane is a green vegetable within the meaning of item 6 of Notification No. 9884-F.T. dated 28th August, 1947, and as such exempt from taxation ?"

(2.) On behalf of the assessee it was contended before the Sales Tax Authorities that the sales tax cannot be levied upon the sale of sugarcane made by the assessee to Motipur Sugar Factory for the years in question. It was contended that the sale of sugar-cane is exempted by the Government of Bihar from taxation by a Notification No. 9884-F.T., dated the 28th August, 1947, which runs as follows:- In exercise of the powers conferred by Section 6 of the Bihar Sales Tax Act, 1947 (Bihar Act XIX of 1947), and in supersession of all the previous notifications on the subject, the Governor of Bihar is pleased to direct that no tax shall be payable under the said Act on the sale of goods specified in the second column of the Schedule hereto annexed subject to the exceptions, if any, set out in the corresponding entry in the third column thereof :- <FRM>JUDGEMENT_413_STC10_1959Html1.htm</FRM>

(3.) The argument on behalf of the assessee was that sugar-cane was a green vegetable within the meaning of item 6 of the Schedule to the notification of the State Government and so exempt from taxation. The argument was rejected by the Board of Revenue. At the instance of the assessee, however, the Board of Revenue has referred the question for the determination of the High Court under Section 25(1) of the Bihar Sales Tax Act.