1961 (1) TMI 64

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....owed their turnover at Rs. 96,298-9-9 and from this they claimed a deduction according to section 5(2)(a)(i) of the Act. However, before the Sales Tax Officer, the Assessing Authority, the position taken on their behalf was that they are totally exempt from sales tax because their preparations as Halwais are exempt under entry No. 50 in Schedule B to the Act and sale of sugar is exempt under entry No. 62 of the same Schedule. The Assessing Authority came to the conclusion that preparations of golian, makhana, Phulian and reoris are not ordinary preparations by Halwais. Item No. 50 in Schedule B to the Act exempts "articles ordinarily prepared by Halwais, when sold by Halwais exclusively". The Assessing Authority came to the conclusion that ....

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....s made by an affidavit of respondent No. 1 and though a general denial to the case set up by the petitioners is given but in paragraphs 8 and 9 of the return it is admitted that articles that were found by the Assessing Authority not to be ordinary preparations of Halwais are in fact such preparations. This means that the petitioners have sold articles ordinarily prepared by Halwais and in addition they have sold sugar. Now it has already been pointed out that articles ordinarily prepared by Halwais are exempt from sales tax when sold by Halwais exclusively and under item No. 62 sale of sugar is exempt from sales tax. So all the articles sold by the petitioners are exempt from sales tax. The Assessing Authority has interpreted that a Hal....

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....s not the position in regard to the Halwais as referred to in item No. 50. I think the word "exclusively" in item No. 50 obviously goes with the word "Halwais" and what the item means is that when the articles ordinarily prepared by Halwais are sold by Halwais they are exempt from sales tax, but when such articles are sold by persons other than Halwais they are not exempt from the same. So a Halwais can sell articles ordinarily prepared by Halwais and he can also sell any other articles. He will be exempt from sales tax in regard to articles ordinarily prepared by Halwais under item No. 50 and he will be liable to sales tax in regard to the other articles sold unless he can claim exemption with regard to any of them under any other item,....