MOTI LAL AND CO Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THE short question, which arises for determination in this case, is whether "durries", in which the assessee deals, fall within the expression "textiles" occurring in the notification issued by the State Government under section 4 of the Rajasthan Sales Tax Act, 1954 (hereinafter called "the Act" ). THE circumstances in which this question arises may be briefly stated :

(2.) M/s. Moti Lal & Co. , Jodhpur (hereinafter called "the assessee"), is a dealer registered under the Rajasthan Sales Tax Act, 1954, and deals in various commodities including durries. He was assessed to sales tax under section 10 of the Act for the period from 13th July, 1957, the 10th November, 1958, by the Sales Tax Officer, Jodhpur. The turnover of the assessee in respect of the sale of durries during the aforesaid period amounted to Rs. 77,290 and sales tax was imposed upon the assessee in respect thereof. The assessee contended before the Sales Tax Officer that by virtue of the notifications issued by the State Government on 14th December, 1957, and 1st July, 1958, the sale of durries was exempted from payment of sales tax. But the contention of the assessee was not accepted. An appeal preferred by the assessee before the Deputy Commissioner, Sales Tax (Appeals), Jodhpur, was also dismissed and a revision petition preferred by him before the Board of Revenue also met the same fate. Then, an application was filed by the assessee before the Board of Revenue for Rajasthan at Ajmer requiring the Board to refer the question of law as to whether "durries" were included within the expression "textile" which arose out of the order of the Board of Revenue to this Court. As the Board did not make any reference within the statutory period, the assessee filed an application in this Court under section 15 (2) (b) of the Act. This Court by its order dated 18th April, 1969, directed the Board of Revenue to state the case and refer the following question of law arising out of its order to this Court : " Whether 'durries' can be held to be included within the expression 'all textiles', whether cotton, woollen or silken, including rayon art-silk or nylon but exclusive of pure silken cloth of all varieties (however manufactured) ?" While section 3 of the Act makes provision for imposition of sales tax in respect of the turnover of every dealer above the specified limit, section 4 provides that the sale of certain goods shall be exempted from payment of tax under the Act. Relevant provisions of section 4 are as under : " 4. Act not to apply to certain sales.- (1) No tax shall be payable under this Act on the sale or purchase of any of the exempted goods if the conditions specified in column 3 of the schedule are satisfied. (2) Where the State Government is of the opinion that it is necessary or expedient in the public interest so to do, the State Government may, by notification in the official Gazette, exempt from tax the sale or purchase of any goods or class of goods or any person or class of persons on such conditions and on payment of such fee as may be specified in the notification. "