SHAH, J. - The assessee in these two references is a limited company which carries on business of manufacturing cotton textiles and yarn in the town of Ahmedabad. The assessees have a factory with a spinning and weaving plant. The assessees applied for registration under the Sales Tax Act for sale of the goods manufactured by them and in that application they stated that they were carrying on the business of selling yarn, cloth, cotton, waste stores etc. and accordingly the assessees were registered as dealers. The assessees sold in the relevant period some excess cotton and also cotton waste. These sale transactions were sought to be charged to sales tax by the authorities. The contention of the assessees was that they were not carrying on business of selling cotton or cotton waste, and, therefore the price received on those sales could not be included in computing the turnover of the assessees. These contentions were negatived by the Sales Tax Authorities and also by the Sales Tax Tribunal.

The assessees then applied for reference to this Court and the Sales Tax Tribunal has referred the following question :-

"Whether on the facts and under the circumstances of the case