The judgment of the court was delivered by

PATHAK, J. - In this reference under section 11(1) of the U.P. Sales Tax Act the Additional Revising Authority, Sales Tax, Varanasi, has submitted the following questions of law for the opinion of this court :-

"(1) Whether in the above circumstance the stay was effective for the year 1959-60 or for all the years ?

(2) Whether the assessment for 1960-61 was passed within the period of limitation ?

(3) Whether assembled cycles can be taxed at the rate of 2 per cent. as an unclassified item or as manufactured cycles taxable at 3 per cent. ?

(4) Whether the estimate of sales was justified ignoring the figure of purchase through Form 'C' with the Sales Tax Officer ?"

The assessee deals in cycles, cycle parts, tyres and tubes. It also assembles cycles from cycle parts and sells them.

On 17th September, 1964, the Commissioner of Sales Tax issued a direction to the Sales Tax Officers that sales tax should be assessed on the turnover of assembled cycles. Proceedings under rule 41(5) of the U.P. Sales Tax Rules were taken against the assessee for the assessment year 1960-61. The assessee objected to the proceedings on the ground that they