The interpretation of the word "all varieties of textiles" in Entry 5 of the Fourth Schedule to the Andhra Pradesh General Sales Tax Act by the Board of Revenue in its circular dated December 8, 1969, is binding on all sales-tax authorities in the State of Andhra Pradesh.

( 1 ) THE assessee, in both these cases, is the same and both these Tax revision Cases are filed by one and the same partnership firm. T. R. C. No. 38 of 1976 arises out of assessment to sales-tax in connection with the assessment year 1968-69, whereas T R. C. No. 39 of 1976 arises out of assessment to sales-tax for the assessment year 1969-70. Since common questions of fact and law arise in both these cases, we dispose of boht these cases by this common judgment.

( 2 ) THE assessee is a partnership concern dealing in oil engines and parts, electrical goods, automobile parts, radio parts and oils at Cuddapah. The assessee firm filed its return for the assessment year 1968-1969 in form-A disclosing a gross turnover of Rs. 12,02,204-67 p. and a net turn. over of Rs, 8,19-312-76 p. The main question which arises in T. R. C. No 39 of 1976 is regarding one item out of disputed turnover aggregating to Rs. 1,57,584-74 p. Out of that amount, an amount of Rs. 1,01,464-50p. relates to the sale of rubber beltings.

( 3 ) SIMILARLY, for the assessment year 1969-70, the assessee-firm filed a return in Form A disclosing a gross turnover of Rs. 12,12,928-98 p. and a net turnover of Rs. 7,85,984-22 p. For this assessment year, the only dispute was regarding the turnover of Rs. 87,319-22 p. representing the sale of rubber beltings. The assessee has been contending in both these cases that rubber beltings are cotton fabrics as appearing and defined in entry 5 of the Fourth Schedule to the Andhra Pradesh General Sales Tax act (hereinafter referred to as the Act ) and hence entitled to exemption and it is also relying on a circular issued by the Board of Revenue (Commercial Taxes) andhra Pradesh, being circular dated 8th December, 1969. The assessee also relies on a subsequent notification issued by the government of Andhra Pradesh in G. O. Ms. No. 559, Revenue (S) Department, dated May 19, 1976 granting exemption inter-alia to transmission beltings and conveyor beltings in case the fabric content therein is not less than 40% and this exemption was granted for the period December 8, 1969 to january 31, 19/3.

( 4 ) THE learned counsel for the petitioner sought to raise the following questions of law. 1) On the facts and in the circumstances of the case, whether the sales Tax Appellate Tribunal was justified in holding that the transmission beltings are not textiles within the meaning of Entry 5 of Sch. IV to the a. P. G. S. T. Act especially when the fabric contents of it is more than 40% 2) Whether the Tribunal was justified in holding that the instructions issued by the Board of Revenue, Government of Andhra Pradesh in ref. No. R. 2334/67. dt. 8-12-69 clarifying the possession of law as to the taxability of certain goods specified therein is on the sales tax authorities? 3) Whether the interpretation placed by ths Tribunal on the decision reported in 32 s. T. C. page 309 is correct?

( 5 ) IN order to appreciate the rival contentions, it is necessary to refer to a few provisions of the Act. Under Section 8 of the Act, subject to such restrictions and conditions as may be prescribed, including conditions as to licences and licence fees, a leader who deals in the goods specified in the fourth Schedule shall be exempt from tax under the Act in respect of such goods. Sub-section (1) of Section 9 states that the State government may, by notification in the Andhra Pradesh Gazettee, make any exemptions or reduction in rate in respect of any tax payable under the Act on the sale or purchase of any specified class of goods at all points or at any specified point or points in the series of sales or purchases by successive dealers or by any specified class of persons, in regard to the whole or any part of their turnover. Under sub-section (2) of the said section, any exemption from tax or reduction in the rate of tax, notified under sub-section (1) may extend to the whole of the State or to any specified area or areas mentioned therein and may be subject to

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