( 1 ) THE Sales Tax Tribunal (Board of Revenue) has made this reference under section 44 (1) of the Madhya Pradesh General Sales Tax Act, 1958, (hereinafter referred to as the Act) at the instance of the assessee. The question referred to us for decision is -"whether on the facts and in the circumstances of the case the purchases of hemp jute were not exempt under Section 50 (1) (iii) of the m. P. General Sales Tax Act, 1958, and were liable to purchase tax under section 7 of the said Act?"

( 2 ) THE assessee-firm is a registered dealer having its head-office at Seoni and a branch-office at Calcutta. The assessee deals in various articles including jute. During the assessment period from 21st October 1960 to 8th Novemer 1961, the assessee purchased hemp worth Rs. 11,42,629. 10 from agriculturists and unregistered dealers. No sales tax was payable under Section 6 of the Act on these sales by the agriculturists and unregistered dealers. The hemp urchased by the assessee was not resold in the State of Madhya Pradesh, but was sent to Calcutta. The Sales Tax Officer, Bala-ghat, held that the assessee was liable to pay purchase-tax under Section 7 of the Act. In appeal before th