JUDGMENT A. K. MATHUR, C.J. - This is a reference made by the Tribunal under section 44(1) of the M.P. General Sales Tax Act, 1958, and the following question of law has been referred by the Tribunal for answer of this Court : "Whether, under the facts and circumstances of the case, the Board of Revenue was right in holding that handloom cloth is covered by the term khadi made out entry No. 51 of Schedule I of the Madhya Pradesh General Sales Tax Act and notified to be exempt under Notification No. F.A.3-81(7)/ST-V dated March 8, 1982 from payment of entry tax." 2. The assessee is a handloom cloth dealer. The assessing officer assessed the entry tax liability to the extent of Rs. 36,309.70 and also imposed a penalty of Rs. 200. The assessing officer also imposed penalty of Rs. 775 under section 17(3) and Rs. 600 under section 43(1) of the Act. Aggrieved against the order of the assessing officer, the assessee preferred an appeal before the CST(A) and the CST(A) maintained the liability of tax but set aside penalty. 3. Aggrieved against the order of the CST(A), the assessee preferred second appeal before the Board of Revenue. The Board of Revenue after examining the matter, came into conclusion that the handloom cloth purchased by the assessee is exempted from the entry tax by virtue of the notification dated March 8, 1982 read with entry No. 51 of Schedule I of the M.P. General Sales Tax Act. Hence, the Revenue approached the Board of Revenue for referring the question of law before this Court and accordingly, the aforesaid question of law has been referred by the Tribunal for answer of this Court. 4. We have heard the learned counsel for the parties and perused the records. A notification under section 10 read with entry 51 of Schedule I was issued in which khadi and some other items has been exempted from payment of entry tax. The learned counsel for the Revenue submitted that this entry as well as the notification dated March 8, 1982 will not cover the khadi cloth. A notification under section 10 read with entry 51 of Schedule I was issued in which khadi and some other items has been exempted from payment of entry tax. The learned counsel for the Revenue submitted that this entry as well as the notification dated March 8, 1982 will not cover the khadi cloth. We have considered the submissions of the learned counsel and the notification issued on March 8, 1982, which is relevant for our purposes, reads as under : "No. F.A.3-81(7)/ST-V dated 8th March, 1982 In exercise of the powers conferred by section 10 of the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (No. 52 of 1976), the State Government hereby exempts the class of goods specified in column (1) of the Schedule below from the payment of entry tax under the said Act to the extent and for the period specified in columns (2) and (3) of the said Schedule : SCHEDULE ------------------------------------------------------------------------ Class of goods Extent of exemption Period (1) (2) (3) ------------------------------------------------------------------------ 1. Pulses as specified in Whole of entry tax From 1st April, 1982 entry 14 of Schedule II to 31st March, 1985 to the Madhya Pradesh (both days inclusive). Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam, 1976. 2. Cotton and wooden khadi cloth Do. Do." ------------------------------------------------------------------------ This notification clearly says that cotton and wooden khadi cloth are exempted wholly from the entry tax. The assessee has produced the certificate from the seller - Sardar Handloom Factory, Meerut, that this is a handloom cloth. Therefore, the Member of the Board of Revenue held that the khadi cloth which has been brought by the assessee is exempted from the entry tax by virtue of notification dated March 8, 1982 read with entry 51 of Schedule I to the act. Thus, we are the opinion that the view taken by the Board of Revenue appears to be justified and hence we answer the aforesaid question in favour of the assessee and against the Revenue. Reference answered in the affirmative.