RAJASTHAN FELTS MANUFACTURING COMPANY JAIPUR Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THE petitioner M/s Rajasthan Felts Manufacturing Com-pany is a partnership firm engaged in the business of manufacturing woollen felts etc. It is a registered dealer under the Rajasthan Sales-tax Act and Central Saies-tax Act.

(2.) FOR the assessment year 1968-69, the petitioner firm filed returns claiming exemption from sales-tax on the sale of woollen felts. The Sales-tax Officer, by his assessment order Ex 1 dated November 3, 1969, allowed the exemption and raised no demands. The exemption was sought on the ground that woollen felts manufactured and sold by it was woollen fabric and was subj ct to additional excise duty on and from August 25, 1965 and as such levy of sale-tax was not attracted to it The Sales-tax Officer held that the woollen felts prouced by the petitioner was woollen fabric and was a declared item order see 14 of the Central Sales-tax Act. It is urged that other manufactures like that of the petitioner were also exempt from payment of sales-tax and in the case of Messr's S. Zoraster and Company, Jaipur, the Additional Commis-sioner, Commercial Taxes, Rajasthan, Jaipur, determined the question in case No. 23 (56) M/st/156 vide judgment dated November 22, 1s66 that the woollen fabrics were subject to levy of additional excise duty under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 and the woollen felts manufactured and fold by Messrs S. Zoraster and Company was covered by entry 18 of the Schedule appended to the Rajasthan Sales-tax Act, 1954 and on the basis if this judgment, Messrs. S. Zoraster and Company and the other similar woollen felt manufacturers were being treated as exemot from payment of sales-tax both under the Rajasthan Sales tax Act and the Central Sales-tax Act.

(3.) MR. D S. Shishodia, appearing on behalf of the State, has urged that the decision in M/s. National Clinic vs. Assistant Commercial Taxes Officer, Sri Ganganagar (!) turned up on the interpretation of sec. 34 of the Income-tax Act and the other cases reported in M/s Sahachari Udyog Mandir, Falna vs. State of Raja than (2) and M/s Bhikkilal Chhotey Lal vs. State of Rajasthan (3) (supra) relied upon by the petitioner, are based on the decision of that case. As the case of M/s. National Clinic vs. Assistant Commercial Taxes Officer, Sri Ganganagar (1) was held to be not laying dwon the good law in view of the other Supreme Court decisions by a Division Bench of this Court in M/s Akbarali Amanatali vs. Assistant Commercial Taxes Officer (4) 1976 Weekly Law Notes 815 the cases relied upon by the petitioner, cannot be of much avail to him.