JHAMANLAL NOTARAM BURA Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THE facts giving rise to this application for revision under the Rajasthan Sales Tax Act, 1955 are that the applicant was assessed to tax on his sales of bura during the period 1957-58 and also subjected to penalty for non-payment of the tax in time. His appeal against the decision of the assessing authority was also decided against him by the Deputy Commissioner, Sales Tax (Appeals) Jaipur. THE learned counsel for the applicant has assailed the assessment order on two grounds. Firstly, it is his contention that bura is nothing but a form of sugar and that tax had already been paid by the applicant at the stage of purchase of the sugar which went into the making of the bura which was sold. On this basis, he has argued that no tax is payable on the sales of bura. Secondly, he has contended that the Rajasthan Sales Tax Rules for the infringement of which the penalty has been imposed on the applicant were validated only in 1959 by Act No. 43 of 1959 and that as such it was illegal to impose any penalty of a retrospective nature, We have no hesitation in accepting this particular contention and following the decisions of this Board in other cases which need not be cited here, we hold that the penalty imposed on the applicant in this case cannot be sustained. As regards the contention of the applicant that the sale of bura is not taxable, we cannot persuade ourselves to agree to the contention of the learned counsel who has attempted to support it by quoting R. L. W. 1959 page 384. THE learned counsel has himself conceded that in that decision the Rajasthan High Court has held that for claiming exemption from tax on the sales of bura it was necessary to have a valid exemption certificate. This ruling goes against the applicant. Notification No. F. 21 (25) S. R. /56 dated 2. 8. 1955 says that sales of bura made of sugar on which sales tax has already been paid shall be exempt provided the dealer holds a valid certificate of exemption. This Notification itself draws a distinction between sugar and bura which is made of sugar. In the face of this Notification the applicant who admittedly does not hold a valid certificate of exemption cannot claim any exemption from tax on his sales of bura. This particular contention of the applicant therefore must fail.

(2.) THE result off the foregoing discussion is that we accept this application for revision only partially and direct that no penalty shall be charged from the applicant and that if any such penalty has already been enforced, the amount thereof shall be refunded to the applicant. .