MALIRAM MADHOLAL Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THIS is a revision petition under sec. 14 (2) of the Rajasthan Sales Tax Act against the order of the learned Deputy Commissioner (Appeals) Commercial Taxes Rajasthan, Jaipur dated 1-9-71. The facts of the case in brief are that the applicant was assessed by the learned Commercial Taxes Officer Ward III Circle D Jaipur under sec. 12 of the Rajasthan Sales Tax Act for the year 1966-67 in respect of the escaped assessment. The assessment was originally made on 25-1-67 in respect of the sale of thread and tax was charged at 2% only. On receipt of an order from the Deputy Commissioner (Administration) Jaipur the applicant was re-assessed and tax was charged at 6%. The applicant feeling aggrieved filed an appeal before the learned Deputy Commissioner who accepted the appeal and remanded the case to the learned assessing authority with the direction that the sale of thread for flying kites be bifurcated from the sale of thread for sewing etc. The assessee feeling aggrieved has filed the present revision petition before this Court.

(2.) IT has been contended on behalf of the assessee that the orders of the learned lower authorities are wrong in law. IT has been further contended that in view of the provisions of secs. 14 and 15 of the Central Sales Tax Act tax exceeding 2% could not be charged as cotton yarn is a declared commodity under entry under sec. 14 (ii) (b ). IT is further contended that the tax under the Rajasthan Sales Tax Act is on the commodity and not on the use to which the commodity is put. IT was therefore contended that the learned Deputy Commissioner (Appeals) erred in law in holding that the thread used for flying kites is liable to be taxed at 6% while the thread used for showing or stitching cloths in liable to be taxed at 2% only. IT was further contended on behalf of the assessee that merely by twisting the thread a different commodity is not made out. In twisting the cotton yarn no manufacturing process is involved and therefore irrespective of the counts of the thread the cotton yarn should be taxed only at 2% and not at 6%. IT was also urged that whenever there is a doubt regarding the rate of tax chargeable on a particular commodity tax should be charged at a rate which is beneficial to the assessee.