Judgment

RAMASWAMI, J.

( 1 ) THE question of law involved in this appeal is whether "dhoop" or "dhoop-batti" falls under the category of "perfume" and is liable to sales tax under item No. 37 of Notification No. 905/x dated 31/03/1956, issued under section 3-A of the U. P. Sales Tax Act (U. P. Act No. 15 of 1948), hereinafter called the "act".

( 2 ) THE respondent is a manufacturer of and dealer in "dhoop-batti". The respondent also deals. in indigenous medicines. The return filed by the respondent was not accepted by the Sales Tax Officer who estimated the turnover as including the sale of "dhoop" and assessed the turnover at 3 pies per rupee. The respondent appealed but the Judge (Appeals) was of the opinion that the case called for enhancement in tax as the saleof " dhoop-batti" fell within item No. 37 of Notification No. ST. 905/x dated 31/03/1956, and was liable to be taxed under section 3-A of the Act, i. e. , at a single point. The Judge (Appeals) estimated the turnover of dhoop-batti at Rs. 10,000. 00 and enhanced the tax from Rs. 348-14-9 to Rs. 838-11-0. The appellate order was confirmed in revision by the Judge (Revisions) who rejected the contention of the respondent that dhoop-batti was used for the purpose of puja and could not be classified in the category of "perfume". Thereafter a reference was made to the High court under section 11 (1) of the Act on the following question of law :"whether dhoop or dhoop-batti does not come under the category of perfume and is not liable to tax under item No. 37 of the Notification No. 905/x dated 31/03/1956, under section 3-A of the U. P. Sales Tax Act?"

( 3 ) THE High court answered the question in favour of the respondent, holding that dhoop and dhoop-batti do not fall within the category of "perfume" under item No. 37 of the Notification No. 905/x dated 31/03/1956. This appeal is brought by special leave from the judgment of the Allahabad High court dated 23/02/1966, in Miscellaneous Sales Tax Reference No. 381 of 1962. Section 3-A of the Act provides: "single point taxation.- (1) Notwithstanding anything contained in section 3, the State government may, by notification in the official Gazette, declare that the turnover in respect of any goods or class of goods shall not be liable to tax except at such single point in the series of sales by successive dealers as the State government may specify. (2) If the State government makes a declaration under Ss. (1), it may further declare that the turnover in respect of such goods shall be liable to tax at such rate not exceeding ten naye paise per rupee as may be specified. (3) Every notification made under this section shall be laid before the Legislative Assembly of the State as soon as may be after it is made and if a resolution amending or modifying it is passed by the Assembly within the Session in which it is laid, it shall, from the date of passing of the resolution, be amended or modified accordingly but without prejudice to the validity of anything previously done or of any liability incurred or assessment made. "

( 4 ) THE Notification No. 905/x dated 31/03/1956, was issued by the State government in exercise of the powers conferred by section 3-A of the Act and it declared that with effect from 1/04/1956, the goods specified therein will be liable to single point tax, which in the case of goods imported from outside U. P. will be at the point of sale by the importer and in the case of goods manufactured in U. P. at the point of sale by the manufacturer. Item No. 37 of the notification reads : "scents and perfumes (in English) and Itra tatha sugandhian (in Hindi ). " The respondent is admittedly a manufacturer of dhoop and dhoop-battis. If these articles fall within the category of "scents or perfumes" within the language of the notification then they will be liable to be taxed in the hands of the assessee at the rate of one anna per rupee which is the tax declared in the notification instead of the multi-point sales tax o