Exemption notification prevails over sales tax demand on broom made of soonk; circulars and notices were quashed.

Broom made of soonk was covered by the Schedule to the exemption notification issued under section 4(a) of the U.P. Sales Tax Act, 1948, so no sales tax was payable on that commodity from the notified date. Circulars and consequential notices demanding tax on the same goods were inconsistent with the exemption and could not override it. The demand was therefore untenable, and the circular and notices were quashed in favour of the assessee.

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Issues: Whether the circular and notices imposing sales tax on broom made of soonk were sustainable in view of the exemption notification issued under section 4(a) of the U.P. Sales Tax Act, 1948.

Analysis: The goods in question were covered by the Schedule to the State Government's notification issued in exercise of the power under clause (a) of section 4 of the U.P. Sales Tax Act, 1948, under which no tax was payable on the notified goods with effect from the specified date. Since broom made of soonk was included in item 6 of the Schedule, the circular and the consequential notices demanding sales tax on that commodity were inconsistent with the exemption granted by the notification.

Conclusion: The demand of sales tax on broom made of soonk was untenable and the circular and notices were quashed in favour of the assessee.

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