Shakti Gol Finger Vs. Asstt. Commissioner, Commercial Taxes, Jaipur  INSC
726 (10 May 1996)
10TH DAY OF MAY, 1996 Present:
Mr.Justice K.Ramaswamy Hon'ble Mr.Justice G.B.Pattanaik K.K.Jain, Ajay K.Jain, Shashi
Bhushan and Pramod Dayal, Advs. for the appellant Aruneshwar Gupta, Adv. for
the Respondent O R D E R The following Order of the Court was delivered:
Shakti Gold Finger V. Asstt. Commissioner, Commercial Taxes, Jaipur.
O R D
appeal by special leave arises from the order and judgment dated April 18, 1991 made in Sales Tax Revision No.110
of 1987 by the High Court of Rajasthan, Jaipur Bench.
respondent-State exercising the power under Section 4(2) of the Rajasthan Sales
Tax Act, 1954, (for short, the 'Act') by a notification dated March 9, 1970 had exempted I Papad and Badi, i.e.
Mangori from sales tax. When the appellant made an application for exemption of
Gole Papad manufactured out of Maida, Salt Starch, Papad Soda, Alum and Food colour
from sales tax under the above notification, the Addl.
by proceedings dated 27.8.82 held that Gole Papad was no covered by the
notification. When the appeal came to be filed, the Sales Tax Tribunal by its
order dated 17.3.86 allowed the appeal and held that the notification would
govern all variety of Papad. whether they are circular or flat in shape
consisting of all the ingredients whether it is pulses, rice, maida, etc. When
the State carried the matter in revision, it came to be allowed by the High
Court and it held that the appellant is not entitled to the exemption. Thus
this appeal by special leave.
seen that the notification clearly mentions that the word 'Papad' has been used
a genus and its species are made from pulses, rice, maida, potato, sago etc. In
the notification the words "Papad and Badi", i.e. Mangori have been
used while in entry No.3 of the notification after the words "letter head
pads" the words "other stationery articles made of handmade
paper" have been used meaning thereby that entry No.3 is not restricted to
only invitation cards, envelopes, file covers, letter head pads but also
includes other stationery articles made of handmade paper.
question is: whether the ingredients of papad are exclusively composed of the
pulses or maida or rice, etc? When the notification mentions papad and Badi,
i.e. Mangori it would appear that they did not intend to differentiate between gole
or flat papad made of any ingredient.
those circumstances it appears that the interpretation given by the High Court
is not correct and that of Tribunal is correct.
is allowed and if there is any difficulty it would be open to the Govt. to make
necessary declaration in exemption notification itself by way of amendment. No