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Laxmi Ratan Cotton Mills Co. Ltd. Vs. Commissioner, Sales Tax - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtAllahabad High Court
Decided On
Case NumberSales Tax Reference Nos. 278 and 279 of 1966
Judge
Reported in[1968]24STC245(All)
AppellantLaxmi Ratan Cotton Mills Co. Ltd.
RespondentCommissioner, Sales Tax
Appellant AdvocateAshoke Gupta and ;B.L. Gupta, Advs.
Respondent AdvocateStanding Counsel
Excerpt:
- .....the u.p. sales tax act for the assessment years 1956-57 and 1957-58. the sales tax officer treated fents, towels and bed-sheets as falling within the description of 'cloth of all kinds, including dhotis, saris and bed-sheets' mentioned at entry no. 5 in the list appended to notification no. st-905/x dated 31st march, 1956, made under section 3-a of the act. he rejected the contention of the assessee that fents, towels and bed-sheets did not fall within the scope of that entry. the finding of the sales tax officer was confirmed on appeal by the assistant commissioner (judicial) sales tax. a revision application by the assessee for each of the two assessment years was also dismissed by the judge (revisions) sales tax. the question whether fents, towels and bed-sheets are to be treated as.....
Judgment:

R.S. Pathak, J.

1. In this and the connected reference the Judge (Revisions) Sales Tax has referred the following question :

Whether feats, towels and bed-sheets are to be treated as cloth chargeable under Section 3-A or as unclassified items ?

2. The assessee was assessed to sales tax under the U.P. Sales Tax Act for the assessment years 1956-57 and 1957-58. The Sales Tax Officer treated fents, towels and bed-sheets as falling within the description of 'cloth of all kinds, including dhotis, saris and bed-sheets' mentioned at entry No. 5 in the list appended to Notification No. ST-905/X dated 31st March, 1956, made under Section 3-A of the Act. He rejected the contention of the assessee that fents, towels and bed-sheets did not fall within the scope of that entry. The finding of the Sales Tax Officer was confirmed on appeal by the Assistant Commissioner (Judicial) Sales Tax. A revision application by the assessee for each of the two assessment years was also dismissed by the Judge (Revisions) Sales Tax. The question whether fents, towels and bed-sheets are to be treated as falling within entry No. 5 of Notification No. ST-905/X dated 31st March, 1956, has already been considered by a learned Single Judge of this Court in L. Cotton Mills Co. Ltd. v. Sales Tax Officer [1962] 13 S.T.C. 1031, on a writ petition filed by the same assessee, in respect of earlier assessment years. The learned Single Judge held that fents, towels and bed-sheets were covered by the entry. That decision was confirmed in Special Appeal by a Bench of this Court on 1st February, 1962 Special Appeal No. 631 to 1961. It is pointed out that the case has been taken in appeal to the Supreme Court and the appeal is pending. It is urged that the hearing of these references be stayed pending the disposal of the appeal in the Supreme Court. It seems to us that the entry is wide enough to include fents, towels and bed-sheets. From the terms in which the entry is couched it is plain that it was intended to include all possible kinds of cloth and it cannot be disputed that fents and towels are only different kinds of cloth. So far as bed-sheets are concerned the entry specifically refers to them. It does not seem necessary in the circumstances to hold up the hearing of these references. We are clear in our minds that the turnover in question before us is covered by entry No. 5 of the notification. In our opinion, fents, towels and bed-sheets are to be treated as falling under entry No. 5 of Notification No. ST-905/X dated 31st March, 1956, and are, therefore, chargeable under Section 3-A of the U.P. Sales Tax Act. We answer the question referred accordingly in each reference. The Commissioner is entitled to his costs which we assess at Rs. 50 in each case. Counsel's fee is assessed in the same figure.


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