1980 (11) TMI 139

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..... red by the halwais dealing exclusively in such articles were taxable at the rate of two per cent and chaat was a preparation ordinarily prepared by halwais. The contention was not accepted. A revision petition to the Commissioner of Sales Tax also failed. On a second revision, the First Additional District Judge, Delhi, held that the type of preparations made by the dealer showed that he was dealing exclusively in halwai preparations. The assessee was, therefore, held to be a halwai and taxable in respect of all his preparations at the rate of two per cent. The present reference at the instance of the Commissioner of Sales Tax has resulted in the following questions being referred to this Court: "(i) Whether, on the facts and in the cir .....

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..... e entire turnover is subject to the ordinary rate of tax. If the chaat preparations are also halwai preparations, then the entire taxable turnover is to be taxed at the lower rate. The Additional District judge dealt with this question in the following words: "According to the material available, he was engaged in selling chaat comprising papri, dahi, chatni, aalu-tikkis, bhaturas, chhola, aalu, samosa and golegappas. The point for consideration is as to whether a person who is engaged in the manufacture and sale of such articles can be said to be a halwai, or not. The term halwai has not been defined in the Act or the Rules or the notification itself. We are, therefore, left to take commonsense meaning of the term. It is a matter of co .....

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..... alu-tikki, etc. It would appear that these articles can be prepared by non-halwais also. But, the question we have to find is whether a person who sells only these articles and other halwai preparations can be said to be dealing in articles which are not ordinarily prepared by halwais. At the same time, it may be noticed that the notification reduced the rate of sales tax in the interest of the general public. If a halwai has to charge a higher rate of sales tax on chaat, then he necessarily has to charge higher rate of sales tax on all his other preparations which cannot be in the interest of the general public. In this view of the matter and keeping in view the indefiniteness or inaccuracy of the term halwai it would appear that chaat may .....

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