Appeal by Special Leave from the Judgment and Order dated 11 5 19 of the Punjab and Haryana High Court in General Sales Tax Reference No 16/74.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
K. Sen, A. R. Lal and Ashok Grover for the Appellant.
2212 of 1977.
The assessee thereupon moved the Tribunal for making a reference to the High Court and on this application, the following question of law was referred by the Tribunal for the opinion of the High Court Whether on the facts and circumstances of the case, the products manufactured by the petitioner are number companyered by Item 30 of Schedule B of the Punjab General Sales Tax Act, 1 1948, and therefore, number exempt from sales tax both under the Punjab General Sales Tax Act, l948 and the Ccntral Sales Tax Act, 1956.
The Tribunal, on appeal, also took the same view and rejected the claim of the assessee to exemption from sales tax in respect of sales of dryer felts.
D. Jain and M. N. Shroff for the Respondent.
The assessing authorities held that the dryer Felts manufactured by the assessee were number textiles within the meaning of Item 30 of Schedule B and they were, therefore, number exempt from sales tax.
The assessee thereupon preferred the present appeal with special leave obtained from this Court.
The Reference was heard by Division Bench and on a difference of opinion between the two Judges companystituting the Division Bench, the Reference was placed before a third Judge.
The Judgment of the Court was delivered by BHAGWATI, J. The short question which arises for determination in this appeal is whether dryer felts manufactured by the assessee fall within the category of all varieties of companyton, woollen or silken textiles, specified in Item 30 of Schedule B of the Punjab General Sales Tax Act, 1948 hereinafter referred to as the Act If they are companyered by this description, they would be exempt from Sales Tax imposed under the provisions of the Act, otherwise they would be liable to sales tax.
