SHELAT, C.J. - These are two references, one at the instance of the assessees and the other at the instance of the State of Gujarat, arising out of a reference made to the Deputy Commissioner by the petitioners, Messrs Pravin Brothers, under section 52(e) of the Bombay Sales Tax Act, 1959. Since they involve the same facts, and arise out of the same order, they can be disposed of by a common judgment.

The petitioners in reference No. 8 of 1963 were at the material time dealers in embroidered cloth. On 1st December, 1960, they sold two embroidered sarees, each of five yards in length, for Rs. 12 and Rs. 10-8-0 respectively and they also sold a piece of embroidered cloth of three yards in length at the rate of Rs. 3-10-0 per yard. It is an admitted fact that the five yards pieces were cut from malmal and voil takas ands embroidery work was thereafter superimposed on them. The embroidered piece of three yards also was similarly prepared. The five yards pieces were intended to be used as sarees and the three yards pieces were meant for preparing ladies' underwear. The Deputy Commissioner held that sarees would be covered by entry 3(i) of Schedule E to the Act, as the said entr