PRABHAT PATTI SUPPLIERS Vs. COMMERCIAL TAXES OFFICER JODHPUR

JUDGEMENT

(1.) THESE three sales tax revision petitions are directed against the judgment dated 29th September, 1987, passed by the Rajasthan Sales Tax Tribunal, Ajmer (hereinafter to be referred to as "the Tribunal") by which the learned Member of the Tribunal decided the three appeals filed by the three petitioners as well as the cross-objections filed by them. As the point involved in all these three revision petitions is the same, I, therefore, propose to decide these petitions by a common order.

(2.) BRIEF facts of the case are that the assessee-petitioners are carrying on the business of manufacture of "goat hair patties" at Jasol, District Barmer. The petitioners purchase "goat hair" and "goat hair strings" (also known in the trade as "jat" and "jat cheen dhaga") from unregistered dealers as well as from registered dealers and pay sales tax at full rate of taxes as applicable. After purchasing this "goat hair" and "goat hair strings", the petitioners convert the "goat hair strings" and "goat hair" into "goat hair patties", by process of sorting of raw goat hair and then by knitting them. The petitioners, thereafter, export the "goat hair patties". According to the petitioners, this is wholly an export item. The petitioners sold the "goat hair patties" through the agency of M/s. Abdulla Bhai Abdul Kadar of Bombay, who are the shipping agents. The assessing authority while assessing the petitioners on these "goat hair patties" held that the assessee is liable to pay purchase tax under section 5a of the Rajasthan Sales Tax Act, 1954, on the purchase of "goat hair" and "goat hair strings", etc. Aggrieved with the order passed by the assessing authority, the assessee-petitioners preferred the appeals before the Deputy Commissioner (Appeals) and the Deputy Commissioner (Appeals) allowed the appeals filed by the petitioners in part. The Deputy Commissioner (Appeals) upheld the levy of tax at the rate of 2 per cent instead of 4 per cent and 8 per cent imposed by the assessing authority. Aggrieved with the order passed by the Deputy Commissioner (Appeals) levying the tax at the rate of 2 per cent, the department preferred the appeals in cases of all these assessees before the Rajasthan Sales Tax Tribunal, Ajmer. The assessee-petitioners also filed cross-objections against the imposition of tax at the rate of 2 per cent. The Tribunal, vide its order dated 29th September, 1987, dismissed the appeals filed by the department, but however, the Tribunal allowed the cross-objections filed by the present petitioners in part and held that the tax for the period 25th September, 1980 to 2nd March, 1982, will be charged at the rate of 1 per cent whereas after this period, i. e. , from 3rd March, 1982 onwards, the purchase tax will be charged at the rate of 2 per cent. Against this order of the Tribunal dated 29th September, 1987, the petitioners have preferred these three sales tax revision petitions. No revision petitions have been filed by the department.

(3.) IN the case of Commercial Taxes Officer v. Sakariya Textiles [1986] 61 STC 247; (1986) 19 STL 110, the Division Bench of Rajasthan High Court, while considering the case of pachrangi dori, came to the following conclusion : " The pachrangi dori in question is a very thin - even thinner than a thin string. It is a bunch of some cotton threads of five colours which are inter-twined and twisted. The mere act of twisting, braiding, colouring, dyeing, or bunching of cotton yarn into a single cord does not bring into existence a new commercial product. The process of twisting, etc. , is, no doubt, there, but the cord still remains a yarn and cannot be treated as an unspecified, distinct and separate product falling under the residuary item. The cotton cord is a bunch of cotton threads and comes into existence by twisting, braiding and inter-twining. IN the cord, the main identity of the goods as yarn is not lost. The cord is, thus cotton yarn for the purpose of trade and commerce. "