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Commissioner of Sales Tax Vs. Mukund Lal and Sons. - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtAllahabad High Court
Decided On
Case NumberS.T.R. No. 428 of 1973
Reported in(1978)7CTR(All)74
AppellantCommissioner of Sales Tax
RespondentMukund Lal and Sons.
Excerpt:
- - of sales tax against that order failed......would be liable to tax vide notification no. st-7122/x-900(16)-64, dated 1-10-1964, or shall be liable to sales tax as unclassified item ?'the dealer carried on business in gur and shakkar etc. the turnover of shakkar was included on the ground that its first purchase was taxable under notification no. st-7122/x-900(16)-64, dated 1-10-1964, issued under s. 3-d of the u.p. sales tax act. the appeal filed by the dealer succeeded and a revision by the commr. of sales tax against that order failed. relevant entry in the notification is to the following effect.'gur ........... 3 paisa per rupee.the question whether gur and shakkar are the same commodities, was considered in the case of c.s.t. lucknow vs. m/s. navin traders etawah. it was held that gur and shakkar are distinct commodities.....
Judgment:

C. S. P. Singh, J. - The Additional Revising Authority Sales Tax, Allahabad has at the instance of the Commissioner of Sales Tax, U.P. referred the following question for our opinion :

'Whether on the facts and in the circumstances of the case Shakkar would be liable to tax vide Notification No. ST-7122/X-900(16)-64, dated 1-10-1964, or shall be liable to Sales Tax as unclassified item ?'

The dealer carried on business in Gur and Shakkar etc. The turnover of Shakkar was included on the ground that its first purchase was taxable under Notification No. St-7122/X-900(16)-64, dated 1-10-1964, issued under S. 3-D of the U.P. Sales Tax Act. The appeal filed by the dealer succeeded and a revision by the Commr. of Sales Tax against that order failed. Relevant entry in the notification is to the following effect.

'Gur ........... 3 paisa per rupee.

The question whether Gur and Shakkar are the same commodities, was considered in the case of C.S.T. Lucknow vs. M/s. Navin Traders Etawah. It was held that Gur and Shakkar are distinct commodities and Shakkar cannot be taxed on the footing that it fell within the entry Gur as used in the notification. This decision was followed in a later case, Additional Commr. of State Tax, U.P. vs. M/s. Jai Prakash Mahendra Pal. We are in respectful agreement with the view expressed in these cases. The reasons given by the Additional Revising authority for holding that Shakkar would not be liable to be taxed under the above noted notification, appears to be correct.

2. We accordingly answer the question be saying that Shakkar would not be liable to be taxed under notification No. ST-7122/X-900(16)-64, dated 1.10.1964 and has to be taxed as an unclassified item. The reference is answered accordingly. As none has appeared to oppose the reference, there shall be no orders as to costs. Counsels fee is assessed at Rs. 100/-.


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