JUDGMENT

PATHAK, J.:— The short question in this appeal by special leave is whether ammonia paper and ferro paper can be described as "paper other than hand made paper" for the purposes of the notification No. ST-3124/X1012(4)-1965 dated July 1, 1966 issued under the U.P. Sales Tax Act, 1948.

2. The respondent assessee is a dealer in stationery and drawing material, and sells ammonia paper and ferro paper. In assessment proceedings under the U.P. Sales Tax Act, 1948 for the assessment year 1966-67 the assessee claimed that ammonia paper and ferro paper were liable to tax as unclassified goods at the rate of two per cent prescribed by S. 3 of the Act. The claim was not accepted by the Sales Tax Officer who held that ammonia paper and ferro paper fell under the entry "paper other than hand made paper" included in notification No. ST-3124/X-1012(4) - 1965 dated July 1, 1966 and its turnover was, therefore, liable to tax at six per cent. Against the assessment so made the assessee appealed, but his appeal was dismissed by the Assistant Commissioner (Judicial), Sales Tax. A revision petition by the assessee thereafter was dismissed by the Revising Authority. At the instance of the assessee a reference was made to the Allahabad High Court for its opinion on the following question :

"Whether ammonia paper and ferro paper fall within the category of paper?"

2A. The High Court has expressed the view that ammonia paper and ferro paper, being chemically coated paper used for obtaining prints and sketches of site plans, were paper to which a chemical process had been applied and a chemical coating had been given, and were not paper in the popular sense of the word, and therefore did not fall within the entry in the aforesaid notification of July 1, 1966. Accordingly it answered the question referred to it in the negative, in favour of the assessee and against the Commissioner of Sales Tax.

3. In this appeal, the entire contention on behalf of the Commissioner of Sales Tax is that the opinion expressed by the High Court is erroneous and that upon a proper view ammonia paper and ferro paper must be regarded as "paper other than hand made paper" within the meaning of the aforesaid notification of July 1, 1966.

4. Section 3 of the U.P. Sales Tax Act charges sales tax on goods sold by a dealer at a specified rate, the charge being imposed on every sale in the series of sales through which the commodity may pass, commencing from the manufacturer to the ultimate retail dealer. It imposes a multi-point tax. Section 3A of the Act, however, provides for the imposition of sales tax on one only of the sales of the commodity in the series of sales, the single point being specified by notification by the State Government. If ammonia and ferro paper fall under the entry "paper other than hand made paper" mentioned in notification ST3124/X-1012(4) - 1965 dated July 1, 1966 the turnover of ammonia and ferro paper sold by the assessee is liable to tax at six per cent. The charge is imposed on the sale either by the manufacturer or by the importer. Presumably, the assessee is either the manufacturer of ammonia paper or ferro paper or their importer. If ammonia paper and ferro paper do not fall within the aforesaid notification the turnover of such paper is liable to sales tax under S. 3 of the U. P. Sales Tax Act at two per cent on every sale in the series of sales through which the goods pass.

5. According to the facts admitted between the parties, the following extract set forth in the assessees revision petition explains accurately the nature of ammonia paper and ferro paper :

"The ferro and ammonia paper is made of paper of rough and special texture by applying a chemical process and giving chemical coating thereon. The chemicals which are used are dye, tartaric acid, therein, ethylene, glycole and some other chemicals. These chemicals are absorbed by the base paper and the coated paper is again passed through another set of rollers so that the chemicals are p