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TMI Blog1963 (4) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... only the canvas cloth and not included in cloth which is item No. 2 in the same list?" The assessee at whose instance the statement has been referred, is a manufacturer of canvas cloth and the question is at what rate it is liable to pay sales tax on the turnover of sale of canvas cloth. Under section 3 of the U. P. Sales Tax Act subject to the other provisions of the Act, a dealer is liable for each assessment year to pay a tax at the rate of two naye paise per rupee on his turnover of a year. Section 3-A empowers the State Government to declare that the turnover in respect of any goods shall not be liable to tax except at such single point in the series of sales by successive dealers as may be specified. When the State Government makes s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... canvas, crepe and rubber goods (except tyres and tubes)." The assessment year here is 1949-50. It is admitted the assessee is liable to pay sales tax on the turnover of sale of canvas cloth manufactured and sold by it and the only question is the rate of sales tax payable by it. Its contention is that the goods sold by it came within serial No. 9 of the notification dated 8th June, 1948, amended with effect from 1st April, 1949, through the notification dated 30th March, 1949, or in the alternative that the sales tax is governed by the main section 3. It reads serial No. 9 and the corresponding serial No. 1 of the amending notification to mean "leather, canvas, crepe and goods made out of rubber". Sri Jagdish Swarup contended that the wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver doubt there was is completely removed by the note expressly referring to "leather goods". There would have been no occasion for this note if serial No. 9 referred to leather as distinct from leather goods. We have, therefore, not the slightest doubt that what is included in serial No. 9 is canvas goods and not canvas cloth. There is no difference between the meanings of the phrases "leather, canvas, crepe or rubber goods" used at serial No. 9 of the notification dated 8th June, 1948, and "leather, canvas, crepe and rubber goods" used in serial No. 1 of the amending notification dated 30th March, 1949. We do not know why the draftsman used the word "and" instead of the word "or" but the difference is of no consequence whatsoever and in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion of Sri Jagadish Swarup that the sale of canvas cloth by the assessee is not covered by entry No. 2 of the notification dated 8th June, 1948. Our answer to the question is as follows: "The word 'goods' in the two notifications refers to and qualifies 'canvas' also. Canvas cloth as distinct from goods made out of canvas, is not covered by entry No. 9 of the notification. Canvas cloth is covered by serial No. 2 of the notification dated 8th June, 1948." We direct that copies of this judgment be sent to the Judge (Revisions) and the Sales Tax Commissioner, U.P., under the signature of the Registrar and the seal of Court as required by section 11(6) of the U.P. Sales Tax Act. The assessee shall pay costs of this reference which we assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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