JUDGMENT MAMOON KAZI, J.-1. The respondent-assessee is engaged in the manufacture and sale of paper board, paper- cones, chip-board, printing ink, bobbins etc. The respondent claimed exemption from sales tax on the sales of bobbins under the C.B.R's Notification No. SRO. 1302(K)/62, dated 5th December, 1962 for the reason that they were being used as components of textile machinery. The Sales Tax Officer disallowed the claim but the learned Appellate Assistant Commissioner decided the issue in favour of the respondent holding that bobbins being components parts of looms etc. Were exempt from sales tax under the said Notification. The finding of the learned Appellate Assistant Commissioner was also confirmed by the learned Appellate Tribunal in its order dated 3rd July, 1982. The department was, however, dissatisfied and it filed an application before the Tribunal for referring the question for the opinion of this Court. Consequently, the following question has been referred for our opinion:- "Whether on facts and circumstances of the case the learned Tribunal was justified in bolding that bobbins manufactured by the assessee- company were component part of looms and exempt from sales tax under Notification No. 3-ST, dated 15th March, 1954 as , amended by Notification No. S.R.O. 1302(K)/1962, dated 5th December, 1962?"
2. It is pertinent to reproduce the Notification under which exemption from sales tax was claimed by the respondent. The Notification is as follows:-- Exemption of machinery component parts etc.-Notification No. S.R.O. 1302(K)/62, dated 5th December, 1962.-In exercise of the powers conferred by section 7 of the Sales Tax Act, 1951 (III of 1951) and in supersession of this Ministry's Notification No. 3-ST dated the 15th March, 1954, the Central Government is pleased to exempt from the tax payable under the said Act, the goods specified hereunder:- (i) Machinery all sorts, not otherwise specified, operated by power of any description (including tractors) such as is used in any industrial process, including the generation, transmission, and distribution of power, or used in processes directly connected with the extraction of minerals and timber, construction of buildings, roads, dams, bridges and similar structures and the manufacture of goods. (ii) Component parts, including spare parts of machinery as defined in item (i) which have been given some special shape, size and quality essential for their being used as such. (iii) Apparatus and appliances not otherwise specified, specially adapted for use in conjunction with machinery as defined in item (i).
(iv) Component parts including spare parts of machinery as defined in item (iii), which have been given some special size and quality essential for their being used as such. (v) Mechanical and electrical control and transmission gear adapted for use in conjunction with machinery as defined in item (i), including belting all types designed for use with machinery, driving chains, switch- boards, switches or fuses assembled in ironclad cases, copper-wires and cables insulated with impregnated paper, electrical earthenware and porcelain, not otherwise specified. (vi) Component parts including spare parts of goods enumerated in item (v). This exemption shall not affect the tax payable on the raw materials from which such goods are produced or manufactured."
3. It would thus be seen that not only machinery of all sorts was exempted from payment of sales tax under the said Notification but even component spare parts of the machinery were also exempted under it. The question whether the paper bobbins manufactured by the respondent were component parts of machinery exempted under the said Notification is a mixed question of fact as well as law.
There is no controversy on the point that factually paper bobbins are component parts of handlooms. The Learned Appellate Assistant Commissioner and the Learned Income-tax Appellate Tribunal have both given a finding that the paper bobbins manufactured by the respondent are components of powerlooms. In fact, as is evident from the order of the Learned Appellate Assistant Commissioner, reliance was placed by him on four certificates issued by different textile mills stating that paper bobbins were components of textile machinery. This factual position has also been confirmed by the learned Income-tax Appellate Tribunal vide its order dated 3rd July, 1982 and no controversy appears to have been raised by the department on this issue. In fact, Mr. Sirajul Haque has invited our attention to a Circular and a General Order dated 8th March, 1982, issued by the C.B.R, wherein it has been stated for the purpose of clarification that wooden and paper bobbins are component parts of the textile machinery and they were thus exempted from payment of sales tax under the aforesaid Notification.
4. Since the aforesaid factual position remains uncontroverted and the answer to the question referred to us is mainly dependent upon this factual aspect of the case, there can be no difficulty in holding that paper bobbins manufactured by the respondent are parts of the textile machinery and as such exempted from payment of sales tax under the said Notification. We, therefore, answer the question accordingly and in the affirmative. The parties are left to bear their own costs.