The appellants carry on the business, interalia, of manufacture and sale of vests and underwears (Baniyans and Chaddiesl out of knitted fabric. On January 31, 1958 a notification was issued by the State Government under B s. 4(2) of the Rajasthan Sales Tax Act 1950, hereinafter called the "Act", exempting from tax the sale of any. garment whether prepared within or imported from outside Rajasthan the value of which did not exceed Rs. 4/- in single piece. In spite of the aforesaid notification the authorities did not exempt from payment of sales tax the sale of vests and underwears the value of c which did not exceed Rs. 4/- in single piece. The notification was interpreted to mean that the goods manufactured by the appellants w~re not garments within its meaning. Mis Pareek ·Hosiery Products, Jaipur, took the matter to the High Court by way of a writ petition under Art. 226 of the Constitution which was allowed and it was held ·that the vests and underwears were D covered by the said notification. On March 26, 1962 the State of Rajasthan issued another notification in exercise of the powers under s. 4(2) of the Act by which the sale of garments whether p·repared within or imported from outside Rajasthan the value of which did not exceed Rs. 4/- in a single piece were exempted from payment .of sales tax .but this exemption exclud• E ed "hosiery products and hats of all kinds." The appellants were subjected to sales tax in respect of sales of vests and underwears of knitted fabric for the periods of assessment ranging between April l, 1961 .to October 31, 1965. Penalties were also levied on them. It was in these circumstances that the appellants filed writ petitions in the High Court. ·
