1986 (2) TMI 58 - SUPREME COURT

Whether the Compressed Woollen Felts manufactured in the small-scale industry unit of the appellants can be said to constitute "cloth" so as to fall within the scope of Entry 6 of Schedule I of the Madhya Pradesh General Sales Tax Act, 1958?

Held that:- Going by the meaning given in Dictionaries as well as by its generally accepted popular connotation "cloth" is woven, knitted or felted material which is pliable and is capable of being wrapped, folded or wound around. It need not necessarily be material suitable for making garments because there can be "cloth" suitable only for industrial purpose ; but nevertheless it must possess the basic feature of pliability. Hard and thick material which cannot be wrapped or wound around cannot be regarded as "cloth". We are, therefore, of opinion that the Commissioner was perfectly right in his view that only those varieties of felt manufactured by the appellants which satisfy the test of pliability will constitute "cloth" so as to fall within the scope of Entry 6 of Schedule I of the Act.

There is absolutely no material on the record to show which out of these 26 varieties was sent as specimen to the Commissioner in 1971. In these circumstances the principle of equitable estoppel is not attracted.