1979 (7) TMI 237 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of the appropriate tax entry for leather board sheets under the Rajasthan Sales Tax Act, 1954.

Analysis:
The judgment of the Rajasthan High Court, delivered by Justice Dwarka Prasad, pertains to an application for making a reference under section 15(3A) of the Rajasthan Sales Tax Act, 1954. The case involved M/s. Ramesh Leather Stores, Jaipur, a registered dealer, and the Assistant Commercial Taxes Officer, Ward II, Circle D, Jaipur, as the assessing authority. The dispute arose during the assessment of the turnover for the year 1971-72 concerning the tax rate applicable to leather board sheets worth Rs. 61,633.79. The assessing authority initially levied a 10% tax rate under entry 36 for all kinds of leather goods except footwear. The Deputy Commissioner (Appeals-I) later allowed the appeal partially, applying a 6% tax rate under entry 79. Subsequently, the Board of Revenue determined that the sheets were pressed skins falling under entry 12, warranting a 3% tax rate. As the Board failed to decide the assessing authority's application within the statutory period, the current application under section 15(3A) was filed before the High Court.

The assessing authority contended that a question of law arose from the Board of Revenue's order regarding the appropriate tax entry for leather board sheets. The authority sought direction for the Board to refer the question to the High Court. The opposing party argued against making a reference, citing precedents related to the taxability of different forms of the same material under sales tax. However, the Court found that the question of whether certain goods fall within a specific entry is indeed a question of law. Consequently, the Court allowed the application and directed the Board of Revenue to refer the question for the Court's decision. The reframed question focused on determining if the Board was correct in categorizing leather board sheets under entry No. 12 of the relevant notification.

In conclusion, the Court allowed the application, requiring the Board of Revenue to refer the question of law concerning the tax entry for leather board sheets to the High Court for a decision. The parties were directed to bear their own costs in the proceedings.