TMI Blog1951 (10) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... dule II referred to in Rule 25 (as it stood before 11th April, 1949) reads as follows: Serial Description Conditions and exceptions subject to which No. of goods. exemption has been allowed. (1) (2) (3) 21 Products of When sold by persons dealing exclusively cottage and in such products, on authorization made home indus- by the prescribed authority in the pres- tries. cribed manner. Now, Schedule II has been dealt with under Section 6 of the Act, which reads as follows: "6. (1) No tax shall be payable under this Act on the sale of goods specified in the second column of Schedule II, subject to the con- ditions and exceptions, if any, set out in the corresponding entry in the third column thereof. (2) The Provincial Government may, after giving by noti- fication not less than one month's notice of its intention so to do, by a notification after the expiry of the period of notice mentioned in the first notification amend either Schedule, and thereupon such Schedule shall be deemed to be amended accordingly." Apart from Section 6, the only other section dealing with exemp- tion from taxation is Section 7, which reads as follows: "7. The Provincial Government may, subject to such restr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les "an appeal against an order passed by the Commissioner" lies to the Board of Revenue. To have a proper idea of the implications of this sub-rule, it is necessary to examine the three preceding sub-rules. The first two sub-rules provide for appeals against original orders of assessment, passed by subordinate officers of the department. In these matters, the final appellate authority is the Commissioner himself. Sub-rule (3) provides for appeals "against any order under this Act, other than assessment with or without penalty" passed by officers of the depart- ment subordinate to the Commissioner. The final appellate autho- rity under this sub-rule is also the Commissioner. Sub-rule (4) is a combination into one of the three preceding sub-rules in regard to original orders passed by the Commissioner. In other words, sub-rule (4) must be construed as providing for appeals "against any order under this Act, including original assessment orders" passed by the Commissioner. The learned counsel for the State contends that the sub-rule must be regarded as providing for appeals only against judi- cial orders and, in his view, an order passed by the Commissioner granting or declining to g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t us consider the facts of the present case. Admittedly, the appellant deals in cloth made on hand-looms and on power-looms and also in jari. His learned counsel agrees that jari is not a product of cottage industry. A point which had weighed with the Sales Tax Commissioner in refusing exempt- tion-that the appellant was purchasing cloth from a class of weavers called master-weavers-has not been pressed in appeal. But apparently the Commissioner held that cloth produced on power-looms was not a product of cottage or home industry; and his view that jari is similarly not a product of cottage or home industry has not been disputed by the appellant's learned counsel. Thus, on a plain reading of the entry in column (3) of Schedule II against item 21, the appellant does not qualify for exemption from taxation. But, in this case, as well as in certain others heard about the same time, it was argued at consider- able length on behalf of the appellants that Section 6 of the Act provides for exemption for specified goods from taxation and not for persons dealing in those goods. The implication of this argument is that if ex- emption is to be granted in respect of products of cottage and hom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... retation, the position from 11th April, 1949, was to be the one indicated by the new item 23. In actual practice, judging from the cases heard by the Board, it would appear that officers of the department have generally regarded hand-loom cloth produced under suitable conditions as a product of cottage and home industry, but not cloth produced on power-looms. In the circumstances obtaining in this State, one cannot seriously question the correctness of the view they have taken. We have not yet reached a stage here when power-looms could be set up in cottages; and cloth produced on power-looms cannot, therefore, be regarded as a product of cottage industry. As regards jari, an interesting point has been raised by the appellant's learned counsel. It has been urged that small quantities of jari and, sometimes even of silk, are used in the production of cotton cloth on hand-looms. Even a person dealing exclusively in hand-loom cloth produced as a cottage industry finds it necessary to purchase small quantities of materials like jari and silk to be supplied to weavers with whom he places orders. I have seen, in this connection, the Calcutta High Court's decision of the 30th May, 1946, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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