Retrospective exclusion of hessian cloth from a tax exemption entry removes sales tax relief for the covered period.

Retrospective amendment to the State sales tax schedule excluded hessian cloth from the exemption entry for "cloth", so the earlier view that it was covered no longer applied. Section 9 of the M.P. General Sales Tax (Amendment and Validation) Act, 1971 substituted the relevant entry to exclude hessian cloth, and section 10 gave that change retrospective effect from the commencement of the principal Act. As a result, hessian cloth was not exempt from sales tax for the period covered by the amendment, and the references were answered against the assessee.

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Issues: Whether hessian cloth was covered by the term "cloth" in item 6 of Schedule I to the State Act and therefore exempt from sales tax, in light of the retrospective amendment excluding hessian cloth.

Analysis: The earlier view that hessian cloth fell within "cloth" was superseded by the M.P. General Sales Tax (Amendment and Validation) Act, 1971. Section 9 substituted the entry so as to exclude hessian cloth from Schedule I, and section 10 gave the amendment retrospective effect from the commencement of the Principal Act. Once the amendment operated retrospectively, the earlier decision no longer governed the references.

Conclusion: Hessian cloth is not covered by the term "cloth" in item 6 of Schedule I to the State Act and is not exempt from sales tax.

Final Conclusion: The legal position was determined by the retrospective statutory exclusion of hessian cloth from the exemption entry, and the references were answered against the assessee.

Ratio Decidendi: Where a taxing entry is retrospectively amended to exclude a commodity from exemption, the commodity ceases to be exempt for the period covered by the retrospective amendment.

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