Holding

The assessment is invalid because the State Act fails to prescribe a single point of taxation as mandated by Section 15, and no notification under Section 5A exists to specify such a point.

Summary

The appellant, a dealer in cotton yarn registered under the Bengal Finance (Sales Tax) Act, 1941 as applied to Delhi, claimed exemption for sales of cotton thread under Entry 21 of the Second Schedule. The Sales Tax Officer held the sales were of cotton yarn and liable to tax. The Financial Commissioner quashed the assessment, holding that Section 15 of the Central Sales Tax Act requires a single point of taxation, which was not prescribed. The High Court upheld the quashing, relying on Fitwell Engineers, interpreting the single point as the sale by the last registered dealer to an unregistered dealer or consumer. The State appealed, arguing that sub‑clause (ii) of clause (a) of sub‑section (2) of Section 5 of the State Act fixed the single point. The Supreme Court held that the State Act does not specify a single point; only Section 5A empowers the Chief Commissioner to do so, and no notification was issued. Consequently, the prerequisite of Section 15 was not satisfied and the assessment was invalidated. The appeal was allowed and the assessment quashed.

Issues considered

The requirement under Section 15 of the Central Sales Tax Act that a single point of taxation be prescribed for goods declared of special importance.
Whether sub‑clause (ii) of clause (a) of sub‑section (2) of Section 5 of the Bengal Finance (Sales Tax) Act fixes the single point of taxation.
Whether the absence of a notification under Section 5A renders the assessment invalid.
Whether the assessment of the appellant's turnover of cotton yarn for 1968‑69 is sustainable.

Legislation cited

Bengal Finance (Sales Tax) Act, 1941 (as applied to Delhi)s. 5(2)(a)(ii), s. 5A
Central Sales Tax Act, 1956s. 14, s. 15
Finance Act, 1959s. amendment to State Act
Finance Act, 1972s. amendment to Section 5

Subjects

sales taxcentral sales taxsingle point of taxationexemptioncotton yarnassessmentSection 15Section 5Astatutory interpretation

Judgment

J ' ., ' "
'985

·J.

1~ 1 , I
"!·
•
-"
•. ,. ,, I· A

or \TlC-iD SARAN GANGA SARAN
v.
t.
COMMISSIONER OF SALES TAX AND ORS. 'B
, . April 26;' 1985
• ..
(R.S. PATHAK AND E.S.,VENKATARAMIAH, JJ.]

Central Sales Tax Act, ss,,14 and 15 read With Bengal Flnanc~ ,1(Sales Jc
Tax) Act 1941, s.5 (2) (a) (ii)-Scope ~/-Goods declared to be oi specfa/,dmport-
ance in inter·State trade or commerce-Omission to specify ·the~ single point at

.,
, ~which the tax may be leviedr Ejfect of.
.
l The appellant, a registered dealer-under the BeilgalFinance ·(Sales11,Tax)
Act 1941 as applied. to the Union Territory of Delhi (for short,·the State>Act)
1:1 used to purchase Cotton· yarn! and sell it to registered dealers, unregistered
'D
A , jdea1ers and consumers. He submitted his return of turnover under the State Act
1

for the assessment year 1968-69 and claimed exeinption in respect.of the ~turn
over of sales of cotton tbread on' the ground that it was an exempted item under
• , , Entry 21 of the Second ,Schedule, The Sales Tax: Officer ·held 'that. the saleS were
1

) ::liable to tax as the same were effected in respect of cotton yarri.1)The 1a.ppe11ant
ultimately .went in revision to the Financial ··Commissioner who·proceedingon
the baSis that the sales were in respect of cotton yarn., ·which was a. declared
E
',~~ :item under s.14 of the Central Sales Tax Act aHowed the··revisio.n ·petition hold-
ing that they could not be subjected to sales tax because. 'one of the 1 roilditions
·, 11 ~Pr.c;:scribed. by s.15 of that· Act ·had not been complied with,. that is to: say, the
~ t,law. had. omitted to prescribe the single point at .which the levy ·could.·aJone be
imposed. Aggrieved by the order of the Financial Commissioner, the Revenue
•. 1 filed a writ petition in the High Court which, relying on the .construction placed • F
~. '"'b'y it on sub-cJause (ii) of cL(a) of s.5 in Fitwell Engineers v.- Financial·Commis-
sloner Delhi Admn. (1975) 35 S.T.C; 66, allowed the petition holding that the
·~ · single point in a series of sales is the sale made by the last registered dealer
, among successive dealers when he ·sold the goods to an unauthorised dea !er or
a consumer. Hence this Appea1. "

Allowing the Appeal, G
·.... :HELD : 1. The compon·ents which enter· into the Concept of cl· ta:ii: are
'• well known. The first is the chaiacter of the imposition known by its 'nature
which· prescribes the taxable ~vent attracting the levy, the second is a clear 'indi-
, · · cation of the person on whom the levy is imposed and who is obliged to pay the
' '·tax, the third is the rate at which the tax is imposed, and the fourth is the mea.
' ··sdre or vaJue to which the rate will be applied for computing the' tax 'liability. If ' H
986 SUPREME COURT REPORTS [1985] 3 s.c.a.

A tJlese components are not clearly_ and defi~itely aScertainable it.-.is difficult to Say
that the levy exists in point of law;·_ -Any uncertairity or vagueness in the legis.
latlve scheme defining any of those components of the levy will be fatal 10 it&
validity. [ 900D·EJ ,,

2. Where the turnover of goods declared to be of special importance in
inter..State trade or :commerce under s. 14 of the Ce~tral Sales Tax Act is
B subjected to sales tax ·law of a St<i.te, section 15 prescribes the maximum ·rate at
which such tax may be imposed and requires that such tax shall not be levied at '
more than one point. The two conditions ·,have been imposed in order to ens~re
that inter-State trade or commerce in sUch EoOds is not hampered by heavy
taxation within the State occasicined by an excessive rate of tax or by rnult•
.'
point taxation. Section 15 enacts restrictions and <:onditions which are essen.
c tial to the validity of an impost by the State on such goods. If either of the two
~".cbnditions are not satisfied, the· impost ~ill be invaid. Now in order that tax
should '·not be levied at more than one" stage it is i1nperative that the sales tax
Jaw of the State should specify either expressly or by necessary implication the
single point at which .the tax· may be levied. Alternatively, it may be enlpower
a statutory authority to prescribe such single point.for the purpose. Where such
point ·is not prescribed, either by .the statute ·or by the statutory delegate, no
D - compliance is possible with s. 15. The single point at which the tax ·may be
imposed must be a definite ascertainable point So that both the dealer and the
sates tax authorities may know dearly the point. at which the tax is to be
levied, [9890-H; 900A-C] '

3. On the construction which found favour :Wifh this Court in Polestar
Electronic (P) Ltd. v. Addi. Commissioner, Sales Tax & Anr., (1978) 41 S. T. c.
E 409 it is apparent that no support ca"n be found for the proposition that Suh-cl.
(ii) or cl. (a) of sub·s. (2j of s.5 of the State Act implies that the single point of
taxation is 'fixed by the State Act at the resaJe·_by a registered dealer to an Un·
·registered dealer or to a consumer. As that is t_he reasoning on which the High
Court has proceeded in the judgment under appeal, it must be held that the
basis underlying the decision of the ,High Court cannot be accepted, (992F-G]

p Fitwell Engineers v. Financial Commissioner, Delhi Adminisii-ation, . Delhi,
and another, (1975) 35 S. T •. C, 66 over-ruled, '

4. It 1s well settled that when the language ofthe statute is.clear,.and
'
admits of no ambiguity, recourse to 1hc Statement of Objects and Reasons for
the purpose of construing a statutory provision is not permissible. Section SA
G of the State Act clearly empowers the_ Chief Commissio.ner to specify the single
point' in ·a series of sales at whiCh single point tax~tion may be levied. The
widest amplitude of power has been conferred on the Chief,Commissioner in
the matter of se1Ccting the point for !a~ation in a series of sales and, if that is so,
clearly 1.10 single point can be spelled out, even by implicatio_n, from the provi-
sion of sub-ct. (ii) of cl. (a) of sub-s .. (2) of s.5. For .to do so would mCan. either
accepting an inconsistency between the two provisions or narrowing down
H correspondingly the scope of's. S A. No such notification has been placed before
. \

0
. GOVIND SARAN GANGA, SARAN'~.' :c;s.T. (Pathak, J.) 981

th.e Court Wh_ich could relate to the 'assessmcut year under consideration. ·There.· A
fore a.vital prerequisite ofs. 15 of the Central Sales Tax Act, ·namely, that the
tax shall not be levied at rii"ore thari one stage. _has not been satisfied in respect
of the turnover ·of cotton yarn. and accordingly the assessment complained of
is liable to be quashed. [993BGr . · · '· · · . ·
.,- .. r. "' •

Polestar Electronic (P} Ltd. y. ;4ddiiio~al Commissioner, Sa/ea Tax and B
. '
Anoth~r, (1978) 41 S. T. C, 409, followed. ·

Bhawanl Cotton Mills• Ltd. v. The State ofP~njab and Another, (1967) 20·.
S. T. C. 290 & Rattan Lal and Co. v. The Assessing Authority und. Another (1970)'
s.
25 T. C. 136, referred to. . ' · ~·
I
~' CIVIT.; APPELLATI; JURISDICTION: 'Civil Appeal No;,
c
2083·-0f 1974 .
.,
' 1
From the judgment ;nd order dated. JO. 9. 1974 of the Delhi
•.· .. '
High Court in Civil W. P•.,No. 460/1973.
. '
D
L.M. Singhavi, Mr< .. .4njali Verma, R.c. Chawla, N.K. Bhuraria
and i. K. Pandey for the appellani. ..

.S. C: Manchanda and. R. N. Poddar (or the Respondents .
..
The judgment of the Court. was delivered by E

,,;a· ..
P;~T,HAKi J : · This appeal
by special leave is .direct~d against
the judgment and order of the High Court of Delhi dismissing the
appell~nt's writ petition questioning the liability .imposed in him on
- a sales taxassessment. · ·
F

The ·appellant carries on business· as a dealer in the re-sale of
cotton yarn. As a dealer he has been registered nnder the Bengal
Finance (Sales Tax) Act, 1941 as applied.10 the Union Territory •of
Delhi (hereinafter referred to as.the 'State Act'). The appellant says
that he purchases cotton yarn and sells it to registered dealers, unre- G
gistered dealers aud consumers. For "ihe assessment year 1968-69 the
appellant submitted his return of turnovet under the state Act and
claimed exemption in respect. of the turnover of sales of cotton
thread on the ground that it was an exempted item under Entry No.
21 of the-Second Schedule. The Sales Tax Officer, by his order dated
October 29,1970, held that the sale's were effected in respect of' H
'~
'
···:;'if

': '~

988 ,, \.1%51 ·~ s.c.P..

A , cotton yarn and, therefore,,they. were liabi~'r. to.tax at one per cent; ,.-,
On appeai/ the.Assistant Coininissioner ·of Sales Tax took a contrary
view'and on his finding that the transacttolis 'weie in respect' of ,,,
cotton thread h'e allowed the(1'i\:pp~al and :'~imck ihe. assessinenf
down .. Acting suo motu in the exercise of his;~~visional jurisdiction, .,
. the Deputy Commissioner of Sales Tax made ·an order under Sub-s.
B (3) of s: 20 1of the Staie Act reversin-i{the .order. of the Assistant .
Commissioner and restoring that of tbe Saies Tax Officer on the ·
ground that what was sold was cotton yarn. The appellant now ap-
plied' in 'revision to the Firiancial'Commissio'ller, belhi Administrn-,
tion~ and t\le Financial Conimissi~ner, proceeding on ;the basis that.
the sales were in respect of cotton Y.arn, which was a declared item
c under s. 14 of the Central Sales. Tax Act, held that- they could· not
be subj~cted to sales tax because one 'o(the conditions prescribed·,by,·!o'
s. 15 of that Act had not been complied with, that is to say, the law
had otµitted to prescribe the ,single point at ,which the levy could
alone'ifo"imposed. Accordingly, the. Fif1anciaf(ccimmissioner allowed ..,; 1,
the revision petition and quashe1f"\hh' assessment. The. Commfs-" ·
D • sioner of Sales Tax thereupon ~led Civil Writ Petition No. 460 of
1

1973'iii the'High Court' of Delhi praying· for·'the quashing of th(:
'
order of the Financial Commissioner. The writ petition was allowed
' \, ,. ..
by the High Court by its judgment and order .d.ated. September 10,
1974. Against'thAt judgment arid'order, the ·appellant has filed the - I
E present appeal. :

• S. 14 of the Central Sales Tax Act enumerates the commo-
dities•declared to be lgO<lds' of special importance i~ ·inter-State 'lraile
or commerce.I' Among the goods ·so deciared is' cotton ·y'arn. S. fS'ilr
the Clentrat•Sales'.lf.ax ·Act1 ·1956 provides :-
F
"15. Every sales tax law of a State shall, in so far as it I
imp.oses or authorises the jmposition of aitax .on the.sale or~ I
;Pl!rchase of declared goods,: be subject to the· following res•;y <>l • ·
·\rictio~s and conditions, :namely :- · ·
' '' ~·

G (a) the tax payable under that law in respect of.. any sale ' ,; .
or ·purchase of such goods inside,the .S.tate shall not exceed. •
three per cent ~f ·the sale .or." purchase price thereof, and'" , .. ,, ,
suc):i tax shall not be levied at more than one stage." , , m1.'.
,• j

The tax is payable by a dealer.under the State Act·· on taxable '" ' ,
H turnover, and sub-s. (2),of s. 5 provides : ·· · . ·" ' ·' 1
<iOVIND S.\IHN G.\NG\L S.\R.\N •. c.s.v (Pathak, J.) l 989
"(2) In this Act, the expression "taxable turnover" means that A
part of a dealer's gross turnover during any period, which· remains
after deducting thereform-

(a) his turnover during that period on-
(i) the sale of goods declared tax free under section 6; B
(ii) sale to a registered dealer-of goods of the class or
classes specified in the certificate of registration of
such dealer, as being intended for re-sale by him, or
for us.e by him as raw-materials in the manufacture of .
goods for sale; and of containers or other materials
for the packing of goods of the class or classes so . c
specified for sale :

Provided th~t in the ca•e of such . sales, a· declar:ition, . (.)
duly filled up and signed by the .registered dealer .to .
whom the goods. are sold and containing the pr~scri-
bed particulars on a prescribed form obtainable from. , D
'the prescribed authority is furnished in the . prescribed .
manner by the dealer who sells the good; , ,

Provided further that where any goods specified in the
certificate of registration are purchased by ·a registered '•
.dealer as being intended for re-sale by him or for ·Use E
by him as raw-materials in the 1 manufacture of goods·"
for sale, but are utilised by him for any other purpose,
the price of the goods so purchased shall be allowed ~
to be deducted from the gross turnover of the selling
dealer but shall be included in the taxable turnover of. F
the 'purchasing dealer."

Ia thdnstant case, we are concerned with the taxation of
goods which under s. 14 of the Central Sales Tax Act have bec;n
declared to be of special importance in inter-State trade or ·com-
merce. Where the .turnover of such :goods is subjected to tax· under G
the sales tax law of a State, s. 15 prescribes the maximum rate at ·
which such tax inay be imposed and requires that such tax shall not
be levied at more than one point. The two conditions 'have been .
imposed in order to ensure that inter-State trade or commerce in ,
such goods is not hampered by ·heavy .taxation within the State
occa.sioned by an excessive rate of tax ·or bymulti ·point taxation. S. · H'
990 SUPREME COURT RBRORTS [1985] 3 s.c.it.
A
1 15 enacts restrictions and conditions which are essential to the vali-
dity of an impost by the State on such goods. If either of the two
conditions are not satisfied, the impost will be invalid. Now in' ,·,
order. that tax should not be tevied at more than ond stage it is
imperative that the sales tax law of the State should specify either
B expressly or be necessary implication the single poin at which the
tax may be ' levied. Alternatively, it . may· empower a statutory autho-
rity to p'rescribe such single point for the purpose. Where such
point is not prescribed, either by the statute or by the statutory
delegate, no compliance is possible withs. 15. The single point at
which the tax may be imposed must be a definite ascertainable
c point so that both the dealer and the sales tax authorities may
'know clearly the point' at which the tax is to b·~ levied.

~
The components which ·ente.r into· the concept of a tax are
well known. The first is the character of the imposition known by
D . its nature which prescribes the taxable event attracting .the levy, .the
1 ·second is a clear indication of the person on whom the levy is im-
posed and who is obliged to pay the tax, the third is the rate at
which the tax is imposed, and the fourth is the measure or value to
which the rate will be applied for computing the tax liability. If
those components are not clearly and definitely ascertainable, it is
difiicult,to say that the levy exists in point of Jaw. Any uncertainty
or vagueness in the legislative scheme defining any of those com-
ponents of the levy will be fatal to its validity.

The charging provision, s. 4, of the State Act enacts that
every dealer whose gross turnover during the year exceeds the tax·
F
able quantum shall be liable to pay tax. The ordinary rule under
the State Act appears to be that the scale made by every . dealer in
a series of sales by successive dealers is liable to tax. That is multi-
point t~xation. fo a scheme of single-point taxation, the levv is
confined to a single point in a series of sales by successive deal~rs.
According to the Revenue, the present levy falls in the latter cate-
G
_, gory, and sub-cl. (ii) of cl. (a) of sub-s. (2) of s.5 implies the single
point at which the turnover of goods may be. taxed. That argument·
from favour with the High Court, and it held the single point in a
series of sales to be the sale made by the last regisfored dealer
among successive dealers when he sold the goods to an unregistered·
dealer. or a consumer. In this connection, the High Court. relied on
H the construction placed by it on sub-cl. (ii) of cl. (a) of sub-s. (2) .~f
. GOVJND SARAN GANGA SARAN v. C.S.T. (Pathak, J.) 991

s.5 in Fitwell Eogineer1 v. Financial Commissioner, . Delhi Adminis-. A
1
/ratio.;,, Delhi, and Another' ( ) In that case, the. High .Court had
held that it was for the purpose of taxing the goods at least at one
point that sub-cl. (ii) of c!. (a) of sub:s• (2) of s.5 of the State Act
had been enacted, that there would be a taxable sale when the regis-
tered dealer sold the good; tJ an unregistered dealer or to a consu-
mer, and that in order that such resale by the registered dealer B

.. should aitract tax the resale to an unregistered dealer or to. a consu-
mer had to be effected in Delhi, because If the resale ~as effected
outside the .Union Territ~ry of Delhi the. Union Territory of Delhi
would have no legislative competence to iax the resale. Now .the
question whether the expression "resale" in sub-cl. (ii) of. cl. (a) of c
~ ,sub-s. (2) of s.5 of the State Act was ·confined fo a r'esale in the
' Union Territory of Delhi by the last registered dealer was subsequ-
ently considered by this Court in Polestar Electronic (P) Ltd. v.
Additional Commissioner, Sales-Tax And Another.!'> Overruling the
decision of the High Court in Fitwell · Engineers (supra) this Court
. held that the expression "resale" waS' not .confined to a resale in the ·. D
a
Union Territory of Delhi and could include resale outside it.
That was the position upto May is, 1972 when sub-cl. (ii) of cl. (a)
· of sub-s. (2) of s.5 was amended by the Finance Act, 1972. This·
Court'observed that the position before the amendment in 1972
was not affected by. the possibiliiy that on the. construction preferred ·
by the Court the Union Territory of Delhi .would be unable to re- E
cover any tax. The Court said :
' . I •

' "It is true that if the purchasing dealer resells the
· goods outside : Delhi, the Union Territory of Delhi would
not beable to recover any iax since the sale to the.purchas-: F
'ing dealer would be exempt from tax under section 5 (2) (a)
f. (ii) and the resale by the purchasing dealer would also be
free from ta'< by reason of section 27. But that is not
·'such a consequence as would compel us to read the word
"resale;' as limited ·to resale inside Delhi •.The argument
of the revenue was that the legislature could never have G ..
intended that the Union Territory of 'Delhi should be al-
. together' deprived of tax in· cases of this kind. The legislative
: intenf could only be to exempt the sale to the purchasing

· (I) (197.l] 35 S. T. C. 66.
(2) (1978} 41 Si T •. c. 409.
il92 SUPREMB COURT REPORTS t1985J 3 S.C.lt.
A dealer in those cases where the Union Territory of Delhi
would be able to recover tax on resale of the goods by the
purchasing dealer. The goods must be taxed at least at
one point and it could not have been intended that they
should not be taxable at all at any point by the Union
Territory of Delhi. The revenue 'urged that it was for the
B purpose of taxing the goods at least at one point that the'
second proviso was enacted by the legislature. We do not
think this contention based on the presumed intention of
the legislature is well-founded."

c And again,
.
:ilf- ' -

"The intention of the legislature was clearly not that
the Union Territory of Delhi should be entitled to tax the
goods at least at one point so that if the sale to the purchas-
ing dealer is exempt, the resale l)y the purchasing dealer
D should be taxable. We do not find evidence of such legis-
lative intent in any provision of the Act." (Emphasis supplied)
Further on, in the same passage, the Court reiterated :

"It will, therefore, be seen that it is not possible to
discover any legislative intent to tax the goods at least 'at
E one point and to exempt the sale to the •purchasing dealar
only if the resale by the purchasing dealer is liable to tax.~· •

On the construction which found favour with this Court in
Polestar Electronic (P) Ltd, (supra) it is apparent that no support can
be found for the proposition that sub-cl. (ii) of cl. (a) of sub-s; (Z)
F of s.5 of the State Act implies that the single point of taxation is
fixed by the Siate Act ai the resale by a registered dealer to an un-
registered dealer or to a consumer. As that is the reasoning on
which the 'High Court has proceeded iu the judgment under appeal,
we must hold that the basis underlying the decision of the High
Court cannot be accepted ..
G
It niay be noted that the State Act as applied to the Union
Territory of Delhi was amended by Parliament in 1959, and s. 5A, •
was inserted. S. 5A provides:

H "Notwithstanding anything to the contrary in this Act,
the Chief Col!l!11issioner may, by notification in the 'official
., ; . G!)v!ND' SARAN GANGA SARAN KC.S.T; (Pathilki ].) 993 '"
, Ga,zette, specify the' point in the ·series of sales by . succes-
A
sive·,dealers at which any! goods or class of go.ods may ·be
, tax~d/'

f. ' j l '.
That provision clear.ly empowers the Chief Commissioner to
spedfy the 'single point in a series of sales at which single point taxa-
B
tion may be levied. The widest amplitude of power has been con-
. ferr.id on.the Chief Commissioner in the matter of selecting the
point for taxation in a series of sales and, if that is so, clearly no
single point can be spelled out, even by implication, from the provi-
sion of sub,cl, (ii) of cl. (a) of sub-s. (2) of s. 5. For to do so would
mea~ eitl;le~ accepting an inc.onsistency between the two provisions c
or na~rowing down correspondingly the scope of s. 5A. We have al- ..
ready pointe(out that the provision for single point taxation cannot,
in the view of this Court expressed in Polestar Electronic ·(P) Ltd.
(supra), be discovered in sub-cl. (ii) of cl. (a) of sub-s. (2) of s.5 of
the State Act To our mind, provision has been made in that behalf
in the statute by the insertion of s.5A. The High Court has referred D
to the Statement of Objects and Reason.s attached to the Bengal
Finance (Sales Ta~) (Delhi Amendment) Act 19.59 in support of its
conclusion that s.SA was inserted only to provide for the levy of tax
at any point other than the point of last sale so that sales-tax may
be levied at the first point on certain items which were manufactured
in factories. It is weU seltled that when the language of the statute is E
clear and admits to no ambiguity, recourse to the Statement of
Obje.cts and Reasons for the purpose of construing a statuory provi-
sion is not permissible. We are of opinion that there is ample
power under s.SA of the State Act enabling the Chief Commissioner
to specify the single point at which tax may be levied in a series of
F
sales. This can, however, be done by him only by a notification in
the Official Gazette. No such notification has been placed before us
which co~ld relate to the assessment year under consideration. We
hold therefore that a vital prerequisite of section J5 of the Central
Sales Tax Act, namely, that the tax shall not be levied at more than
one stage, has not been satisfied in. respect of tbe turnover of cotton ·
G
yarn, and accordingly the assessment complained of is liable to be
quashed.

While concluding, we may point out that a somewhat similar
question arose before this Court in Bhawani Catton Mills Ltd. v. The
H
994 SUPREME COURT REPORTS tt985] 3 S.C.R
I

A State of Punjab and Another,<' )the question being whether the second
proviso to s. (i) of s.5 and sub-cl- (vi) of cl. (a) of sub-s. (2) of s. 5
of the Punjab General Sales Tax Act 1948 implied the single point
at which goods were taxable. The contention was negatived by this
Court. That is how that decision was understood by this Court sub·
sequently in Rattan Lal and Co. And Another v. The Assessing
Authority And Another.(2)
Accordingly, we hold that the assessment of the turnover of ·'
cotton yarn for the assessment ytra 1968-1969 under the Bengal
Finance (Sales Tax) Act, 1941 as applied to the Union Territory of
Delhi cannot be sustained.
In the remit, the appeal is allowed, the judgment and order of
c the High Court of Delhi are set. aside and the assessment of the
turnover of cotton yarn is quashed. The appellant is entitled to its
costs.

D
M.L.A. Appeal a/lowed.

(I). (1967] 20 S. T. C. 290.
(2). (19701 25 S, T. C. 136.
E

'