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2015 (10) TMI 210 - HC - VAT and Sales TaxClassification of HDPE/PP Woven Fabric - Whether Artificial silk - Rate of VAT - Entry 51 of Schedule B of Haryana VAT Act, 2003 - Held that:- The Hon'ble Supreme Court in Porritts & Spencer's case [1978 (9) TMI 72 - SUPREME COURT OF INDIA] was considering the same entry as in the present case and held that the word "textiles" is derived from Latin 'texere' which means 'to weave' and it means any woven fabric. - In the aforesaid case, Hon'ble Supreme Court further held that the use does not determine the character as textile. Therefore, an argument that "dryer felts" are used only as absorbents of moisture in the process of manufacture which does not fall within the category of "textiles", was rejected. In view of the judgment in Porritts & Spencer's case (supra) and keeping in view the test that in a taxing statute words of everyday use must be construed not in their scientific or technical sense but as understood in common parlance and the fact that textile means any woven fabric and therefore the fabric manufactured out of HDPE by warp and weft pattern is a textile falling within entry 51 of Schedule B. It will thus be a good exempted - The entry 51 is inclusive entry. It includes all varieties of cotton, woolen or silken textiles and also rayon, artificial silk or nylon. Thus any textile may be cotton, woolen or silk either from natural fiber or man made fiber falls within the scope of exempted goods. The clarification issued by the Financial Commissioner-cum- Principal Secretary, Government of Haryana, Excise and Taxation Department on 10.12.2009 that the products manufactured by similar manufacturers are not covered under entry 52 and 53 of Schedule B nor under Schedule C of the Act, therefore, an unclassified good is liable to be taxed at the rate of 12.5%. We find that such clarification runs counter to meaning of the expression "textile" including "artificial silk" given by Supreme Court. In view of the interpretation of the similar provision, in respect of the present assessee itself, we find that the clarification could not be issued against an order passed by the competent authority interpreting similar provision. HDPE woven fabric falls within entry 51 of Schedule B of Haryana VAT Act, 2003 and is exempted from payment of tax. - Decided in favor of assessee.
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