Bamboo utensils exemption prevents purchase tax on bamboo baskets used to carry limestone under the sales tax law.

Bamboo baskets used for carrying limestone to kilns were treated as exempt goods because they fell within Entry 48 of Schedule I, covering utensils made of bamboo. On that construction, the baskets were regarded as dauri or bamboo utensils within the exempt entry. As the goods were exempt during the relevant assessment period, no purchase tax could be levied on their purchase from unregistered dealers under section 7(1) of the M.P. General Sales Tax Act, 1958.

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Issues: Whether bamboo baskets used for carrying limestone to kilns, purchased from unregistered dealers, attracted purchase tax under section 7(1) of the M.P. General Sales Tax Act, 1958.

Analysis: The baskets were held to fall within Entry 48 of Schedule I, which exempted utensils made of bamboo. On that construction, bamboo baskets were treated as dauri or as bamboo utensils covered by the exempt entry. Since the goods were exempt from tax during the relevant assessment period, no purchase tax could be levied under section 7(1).

Conclusion: The bamboo baskets did not attract purchase tax under section 7(1) of the M.P. General Sales Tax Act, 1958, and the answer was in favour of the assessee.

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