9911796707
TMI Blog1976 (9) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... a dealer in rice huller, and flour mill mechineries. For 1973-74, the assessment was made originally on a taxable turnover of Rs. 12,42,377.79. Subsequently, it was seen that a turnover of Rs. 4,093.63 relating to sales of hair beltings and cotton beltings from 4th March, 1974 to 31st March, 1974 escaped assessment at 5%. Therefore a revised assessment was made and the turnover of Rs. 4,093.63 relating to sales of hair beltings and cotton beltings were taxed at 5%. The assessee's objections against the proposal for revised assessment were over-ruled. So far as 1974-75 is concerned, the assessee reported a total and taxable turnover of Rs. 15.55.874.14 and Rs. 9,09,777.52, respectively. The assessing officer disallowed the claim for exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h restrictions and conditions as may be prescribed, a dealer who deals in the goods specified in the Third Schedule shall not be liable to pass any tax under this Act in respect of such goods. The assessee has produced the test certificate granted by the Government of India, National Test House, Alipore, Calcutta, declaring that the hair content of the hair belting was 50% by weight and the cotton of cotton belting was 50% by weight. Therefore, it has to be seen whether hair belting and cotton belting come within the definition of Item 19, 20 and 21 of the Central Excise and Salt Act 1944. 6. In Items 19(1) and 19(14) of the Central Excise and Salt Act, cotton fabric has been described as "All varieties of fabrics manufactured either wholl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n belting are not rubber products and they have not been sought to be assessed under Item 126 of the First Schedule. The Appellate Assistant Commissioner has proceeded to justify the levy of sales tax on these items treating them as goods falling under Item 81 of the First Schedule. In our opinion, the view of the lower authorities is not correct and both items are exempted from sales tax. Hence, we find this point accordingly in favour of the assessee.
8. In the result, the appeals are allowed in respect of the disputed turnovers of cotton and hair beltings and the assessee is entitled to exemption on a turnover of Rs. 4,093.63 at 5% for the year 1973-74 and Rs. 99,987.28 at 5% for the year 1974-75. X X X X Extracts X X X X X X X X Extracts X X X X
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