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1971 (7) TMI 131 - SC - VAT and Sales TaxWhether the cloth manufactured by means of looms worked by power can be regarded as "cloth manufactured by mills" for which sales tax was payable at the rate of 6 pies in a rupee in terms of the notification dated June 8, 1948, issued under section 3A of the U.P. Sales Tax Act, 1948? Held that:- Appeal dismissed. The fallacy in the appellant's argument is that by the same reasoning a building in which looms worked by manual labour are to be found would also have to be regarded as "mills". This would be contrary to the accepted and popular meaning of handloom or power-loom cloth and mill-made cloth. We are satisfied that the distinction which was kept in view when the notification was promulgated was between the aforesaid two categories or types of cloth involving essentially a difference in the process by which it was manufactured.
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