MANCHANDA, J. - This is a case stated under section 11(1) of the U.P. Sales Tax Act (hereinafter referred to as the Act). The question referred is :-

"Whether the giving of bullion by a dealer in exchange for purchase of ready-made ornaments manufactured by goldsmiths is a 'sale of bullion' within the meaning of the U.P. Sales Tax Act or is a barter or exchange transaction and, accordingly, does not come within the purview of the said Act ?"

The facts lie within a narrow compass. The assesses is a dealer in bullion and ornaments. The relative assessment year is 1956-57. The assesses disclosed a turnover of Rs. 2,05,000 for ornaments and Rs. 1,60,014 for bullion. The Sales Tax Officer rejected the accounts and determined the turnover at Rs. 4,05,000 and apportioned this between the turnover of ornaments and bullion at Rs. 2,00,000 and Rs. 2,05,000, respectively. Aggrieved by that order, the assesses filed an appeal to the Judge, Sales Tax (Appeals), who reduced the turnover to Rs. 3,80,000 (Rs. 1,80,000 for ornaments and Rs. 2,00,000 for bouillon). Against this order both the department and the assesses went up in revision. According to the department the small reduction in