Full Judgment Text
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PETITIONER:
M/S. SHIV SHAKTI GOL FINGER
Vs.
RESPONDENT:
ASSTT. COMMISSIONER, COMMERCIAL TAXES, JAIPUR
DATE OF JUDGMENT: 10/05/1996
BENCH:
K. RAMASWAMY, G.B. PATTANAIK
ACT:
HEADNOTE:
JUDGMENT:
THE 10TH DAY OF MAY, 1996
Present:
Hon’ble Mr.Justice K.Ramaswamy
Hon’ble Mr.Justice G.B.Pattanaik
K.K.Jain, Ajay K.Jain, Shashi Bhushan and Pramod Dayal,
Advs. for the apellant
Aruneshwar Gupta, Adv. for the Respondent
O R D E R
The following Order of the Court was delivered:
Leave granted.
This appeal by special leave arises from the order and
judgment dated April 18, 1991 made in Sales tax Revision
No.110 of 1987 by the High Court of Rajasthan, Jaipur Bench.
The respondent-State exercising the power under Section 4(2)
of the Rajasthan Sales Tax Act, 1954, (for short, the ’Act’)
by a notification dated March 9, 1970 had exempted Papad and
Badi, i.e. Mangori from sales tax. When the appellant made
an application for exemption of Gole Papad manufactured out
of Maida, Salt Starch, Papad Soda, Alum and Food colour from
sales tax under the above notification, the Addl.
Commissioner by proceeding dated 27.8.82 held that Gole
Papad was not covered by the notification. When the appeal
came to be filed, the Sales Tax Tribunal by its order dated
17.3.86 allowed the appeal and held that the notification
would govern all variety of Papad, whether they are circular
or flat in shape consisting of all the ingredients whether
it is pulses, rice, maida, etc. When the State carried the
matter in revision, it came to be allowed by the High Court
and it held that the appellant is not entitled to the
exemption. Thus this appeal by special leave.
It is seen that the notification clearly mentions that
the word ’Papad’ has been used a genus and its species are
made from pulses, rice, maida, potato, sago etc. In the
notification the words "Papad and Badi", i.e. Mangori have
been used while in entry No.3 of the notification after the
words "letter head pads" the words "other stationery
articles made of handmade paper" have been used meaning
thereby that entry No.3 is not restricted to only invitation
cards, envelopes, file covers, letter heads pads but also
includes other stationery articles made of handmade paper.
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The question is: whether the ingredients of papad are
exclusively composed of the pulses or maida or rice, etc?
When the notification mentions papad and Badi, i.e. Mangori
it would appear that they did not intend to differentiate
between gole or flat papad made of any ingredient.
Under those circumstances it appears that the
interpretation given by the High Court is not correct and
that of Tribunal is correct.
The appeal is allowed and if there is any difficulty it
would be open to the Govt. to make necessary declaration in
exemption notification itself by way of amendment. No
costs.