SETH, J. - At the instance of Messrs. Indodan Milk Products Ltd., a dealer in condensed milk, etc., the Additional Judge (Revisions), Sales Tax, referred the following question in respect of the assessment years 1964-65 and 1965-66 to this court for opinion :

"Whether, in the facts and circumstances of the case, condensed milk is taxable under the Central Sales Tax in view of Notifications Nos. S.T. 911/X dated 31st March, 1956, and S.T. 776/X-900(16)-64 dated 16th February, 1965, of the U.P. Sales Tax Act and read with section 8(2A) of the Central Sales Tax Act ?"

While hearing these references, a Division Bench of this Court felt that the case of Nestle's Products India Ltd. v. Commissioner of Sales Tax ([1963] 14 S.T.C. 606.), in which it has been held that condensed milk is not milk within the meaning of section 4(a) of the U.P. Sales Tax Act, requires reconsideration. Accordingly, it referred these cases to a Full Bench and that is how they have come up before us.

During the assessment years in question, the dealer sold condensed milk in soldered tins and other cans in the course of inter-State trade. The Sales Tax Officer brought the turnover in respect of such sales to tax under the Central Sales Tax Act. The dealer then filed appeals against the assessment orders and contended that when during the course of inter-State trade it sold condensed milk in soldered tins and other cans, it did not sell the same in sealed containers. Sale of condensed milk, in such circumstances, was totally exempt from payment of sales tax as per notifications issued by the U.P. Government. In the circumstances it was not liable to pay Central sales tax also on such turnover, as provided in section 8(2A) of the Central Sales Tax Act. The Assistant Commissioner (Judicial), who heard the two appeals, did not go into the question whether in this case the dealer sold milk in sealed containers or not. He held that the turnover of sales of condensed milk was generally not exempt under the various notifications issued by the U.P. Government and as such the same was liable to be taxed under the Central Sales Tax Act. The dealer then filed two revision applications before the Additional Judge (Revisions), which were dismissed and the two assessment orders passed by the Sales Tax Officer as confirmed in appeal were upheld. Subsequently, at the instance of the assessee, the learned Judge (Revisions) referred the aforementioned question for the opinion of this court in both the cases.

Section 8 of the Central Sales Tax Act makes provision for payment of sales tax in respect of sales made by a dealer in the course of inter-State trade. Sub-section (2A) runs thus :

"Notwithstanding anything contained in sub-section (1A) of section 6 or sub-section (1) or sub-section (2) of this section, if under the sales tax law of the appropriate State, the sale or purchase, as the case may be, of any goods by a dealer is exempt from tax generally or is subject to tax generally at a rate which is lower than 3 per cent (whether called a tax or a fee or by any other name), the tax payable under this Act on his turnover in so far as the turnover or any part thereof relates to the sale of such goods shall be nil or, as the case may be, shall be calculated at the lower rate.

Explanation. - For the purposes of this sub-section a sale or purchase of goods shall not be deemed to be exempt from tax generally under the sales tax law of the appropriate State if under that law it is exempt only in specified circumstances or under specified conditions or in relation to which the tax is levied at specified stages or otherwise then with reference to the turnover of the goods."

Section 4(a) of the U.P. Sales Tax Act provided that no tax shall be payable on the sale of water, milk, salt, newspaper and motor spirit. This section further authorises the State Government to issue notifications exempting the turnover of sale of any other goods from sales tax. According to section 4(b