JUDGMENT R. M. Sahai, J. - The following question has been referred by the Additional Judge Revision, Sales Tax Meerut for the opinion of this Court.
"Whether in the facts and circumstances of the woollen caps are taxable as woollen goods or as unclassified goods, in the year 1967-68 ?"
The assessee among other items effected sale in woollen caps. The assessing authority assessed it at 6 per cent against which the assessee contended in appeal that woollen caps are not covered by the entry of woollen goods as part of the material used in it cotton. It was further contended that woollen caps are readymade garments and therefore were not liable to tax at the rate of 6 per cent. The argument was repelled as the entry regarding woollen goods clearly indicated that in its ambit even those garments were included which were made out of woollen cloth. Before the Judge Revision the assessee relied on Notification dt. 1st of July 1969 by which a tax on caps has been levied at 3 per cent. It appears that the Judge Revision heard the revision against the order passed for assessment years 1967-68, 1968-69 and 1969-1970 together. Notification No. ST 3614 of 1st of July 1969 was relevant only for the assessment year 1969-70. The contention of the assessee was correct so far as that year was concerned but this Notification was not applicable to earlier years. In our opinion the Judge Revision was misled and while deciding the revision for 1969-70 he lost sight of the fact that this Notification would not supply to earlier years. The effect of this was that the Judge Revision by applying a wrong Notification reduced the tax on woollen caps for the years 1967-68 and 1968-69. Notification No. ST 4562 dated 1st of October, 1962 provided that woollen goods shall be taxable at the rate of 6 per cent. The entry clearly indicates that even those ready made garments which are made out of woollen cloth shall be included in this entry. The finding in this case is that woollen caps sold by the assessee were made out of woollen cloth. We are therefore of the opinion that woollen caps were taxable as woollen goods in the year 1967-68.
2. The reference is answered in favour of the Department, and against the assessee. As none has appeared to oppose the reference there shall be no order as to costs.