Law: Sales Tax Act, (III of 1951)

Section: 7

Sales Tax Act (111 of 1951)---S.7---Notification No.3-ST, dated 15-3-1954 [as amended by Notification No. S.R.O. 1302(K)/1962, - dated 5-12-1962]---Wooden and paper bobbins--Exemption from sales tax---Mixed question of law and fact---Wooden and paper bobbins being component parts of the textile machinery were exempt from payment of sales tax under the Notification No.3-ST, dated 15-3-1954 as amended by Notification No.S.R.O./1302(K)/1962, dated 5-12-1962. JUDGMENT MAMOON KAZI, J.---The respondent-assessee is engaged in the manufacture and sale of paper board, paper-cones, chip-board printing ink, bobbins etc. The respondent claimed exemption from sales tax on the sales of bobbins under the C.B.R's. Notification No. SRO.1302(K)/62, dated 5th December, 1962 for the reason that they were being used as components of textile machinery. The Sales Tax Officer disallowed the claim but the learned Appellate Assistant Commissioner decided the issue in favour of the respondent holding that bobbins being component parts of looms etc. were exempt from sales tax under the said Notification. The finding of the learned Appellate Assistant Commissioner was also confirmed by the learned Appellate Tribunal in its order dated 3-7-1982. The department was, however, dissatisfied and it filed an application before the Tribunal for referring the question for the opinion of this Court. Consequently, the following. question has been referred for our opinion:-- "Whether on facts and circumstances of the; case: the learned Tribunal was justified in holding that bobbins manufactured by the assessee-company were component part of looms and exempt from sales tax under Notification No.3-ST, dated 15-3-1954 as amended by Notification No. S.R.O.1302(K)/1962, dated 5-12-1962?" 2. It is pertinent to reproduce the Notification under which exemption from sales tax was claimed by the respondent. The Notification is as follows:-- Exemption of machinery component parts etc ---Notification No. S.R.O. 1302(K)/62 dated 5th December. 1962: --In exercise of the powers conferred by section 7 of the Sales Tax Act, 1951 (III of 1951) and in supersession of this Ministry's Notification No.3-ST dated the 15th…

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