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1988 (10) TMI 41 - SC - VAT and Sales TaxWhether, in respect of the assessment years 1971-72 and 1972-73 the exemption given to 'cotton fabrics' under Item 7 above should be restricted to 'cotton fabrics' as defined in the Central Excises and Salt Act.1944 as it stood on 1-4-1963 or whether it would also cover goods falling under the said definition after Its amendment in 1969? Held that:- the 1963 Act, on a proper construction, does indicate a policy that certain items which are subject to additional excise duty should be left out of sales tax levy except in cases where there is a specific indication or provision of the Act to the contrary. The Kerala State legislature cannot be said to have attracted the 1944 Act definitions with their future amendment, blindly and without application of mind. On the other hand, it has been done in pursuance of a scheme, a purpose and a policy. It cannot, therefore, be said that there has been any abdication of its legislative functions by the Kerala legislature. Thus the High Court was right in the view it took viz. that the scope of the exemption available under Item 7 of the Third Schedule to the 1963 Act will vary according to the scope of the corresponding entry in the Schedule to the 1944 Act as it stands at the relevant time. So far as assessment years 1971-72 and 1972-73 are concerned, the definition of 'cotton fabrics' in Item 19 of the Schedule to the 1944 Act, as amended by the Finance Act, 1969 w.e.f. 1-4-1969, will apply. Appeal dismissed.
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