BERI, J.—This is a reference under sec. 15 (1) of the Rajasthan Sales Tax Act, 1954 (Act No. XXIX of 1954 hereinafter called the Act) by the Commissioner, Excise and Taxation, Udaipur, made at the instance of the firm of Messrs. Motilal & Co., Jodhpur, through its partner Inder Singh, the assessee.

2. For the assessment year 1957-58 the assessee, who carries on business in Jodhpur City, claimed exemption of Sales-Tax on Durries. The Sales-Tax Officer disallowed this claim holding that Durries were not included in handloom cloth. The assessee preferred a revision application before the Commissioner, Excise and Taxation, Rajasthan. The Officer also rejected the assessees claim on the ground that the term "cloth" is not a word of art and Durries are not included in the Notification No.F.21 (7) SR/55 dated 14.4.55. On an application by the assessee that the Durries woven on handloom stood covered by the exemption certificate granted under the Notification relating to handloom cloth, the Commissioner has submitted the following question for answer;—

"Whether under the facts and circumstances of the case the turnover of Durries has been rightly included in the taxable turnover?"

3. We have

Click Here to Read the rest of this document