STATE OF RAJASTHAN Vs. LIBERTY SPORTS

JUDGEMENT

(1.) THIS is a reference under section 15 of the Rajasthan Sales Tax Act (hereinafter referred to as the Act ). The Board of Revenue for Rajasthan, Ajmer, by its order dated 2nd July, 1970, has referred the following question of law :- " Whether under the facts and circumstances of the case leather covers of volleyball and football should be taxed at 7 per cent during the period 1st July, 1962 to 30th June, 1963 (1963-64) or at the general rate in force during the relevant period ?" Brief facts giving rise to this reference are as under : Assessee M/s. Liberty Sports, M. I. Road, Jaipur, is dealing in sports goods. The Assessing Authority held leather covers of volleyballs and footballs taxable as leather goods at the special rate of 7 per cent instead of the ordinary rate (of 5 per cent up to 1st March, 1963 and 6 per cent during the rest of the period in question ). The assessee went in appeal, but the same was dismissed. The assessee thereupon submitted a revision petition before the Board of Revenue, which was heard by a Division Bench and decided in favour of the assessee. The Assessing Authority filed an application before the Board of Revenue under section 15 of the Act requesting for making a reference; but since the said application could not be disposed of within a period of 180 days no order was passed thereon. The assessing authority then applied to the High Court for calling for a reference under section 15 (3a) of the Act. The High Court by its order dated 20th March, 1970, directed the Board of Revenue to refer the above question of law.

(2.) THE learned counsel for the department has submitted that the Government had issued a notification wherein the relevant entry reads as follows :- " All kinds of leather goods except foot-wear 7 per cent. "