C T O Vs. BABU BAKERY JODHPUR

JUDGEMENT

(1.) THE Board of Revenue for Rajasthan, Ajmer has referred the following question for our decision: Whether in the facts and circumstances of the case, Board was justified in holding that bread is cooked food within the meaning of the term used in s. 3 (1) (a) of the Sales Tax Act and hence not taxable? THE non-petitioner M/s Babu Bakery Udaimandir, Jodhpur (assessee) was assessed on January 4, 1969. Sales-tax at 2% was charged on the sale of bread. On appeal the Deputy Commissioner (Appeals), Commercial Taxes, Jodhpur set aside the assessment. THE revision was also dismissed and that had led to the present Reference.

(2.) S. 3 (1) (a) of the Rajasthan Sales Tax Act, 1954 (No. XXIX of 1954) (for short "the Act herein) as it stood at the relevant time is as under:- " (3) Incidence of taxation:- (1) Subject to the provisions of this Act, every dealer whose turn over in the previous year in respect of sales or supplies of goods exceeds- (a) In the case of a dealer who imports goods, or manufactures any goods other than cooked food or deals in cereals and pulses in any of their forms Rs. 5,000". According to it dealer could import goods or manufacture goods other than cooked food etc. are liable to pay tax if their turn over exceeds Rs. 5,000/ -. The contention of the assessee was that the bread is cooked food and, therefore, it is not liable to pay tax. In these circumstances the only question is whether bread is cooked food within the meaning of s. 3 (1) (a) of the Act.