"Nalidar coal" treated as coal for sales tax classification under the M.P. General Sales Tax Act.

"Nalidar coal" was treated as falling within the ordinary expression "coal" for taxation under item No. 2 of Part I of Schedule II to the M.P. General Sales Tax Act, 1958. The Madhya Pradesh High Court followed its earlier interpretation and found no reason to depart from it, holding that the commodity is covered by the schedule entry. The reference was answered in the affirmative, so the classification was accepted in favour of the assessee and against the department.

---

---

Issues: Whether "nalidar coal" is coal and is governed by item No. 2 of Part I of Schedule II to the M.P. General Sales Tax Act, 1958.

Analysis: The reference arose under section 44 of the M.P. General Sales Tax Act, 1958. The question was whether "nalidar coal" fell within the expression "coal" for the purpose of taxation under the relevant schedule entry. The Court followed its earlier view that "nalidar coal" is coal and found no reason to depart from that interpretation.

Conclusion: The question was answered in the affirmative. "Nalidar coal" was held to be coal and to fall within item No. 2 of Part I of Schedule II, in favour of the assessee and against the department.

---