TMI Blog1976 (9) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the case, bed sheets, napkins and towels, after being manufactured in the mill when cut into sizes and stitched at both ends and pillow covers manufactured by stitching three ends of mill-made cloth after being cut into particular sizes are cloths or clothes? (2) Whether, in the facts and circumstances of the case, the petitioner's dealing in pillow covers and napkins are covere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee contended while challenging the assessments that the items were mill-made goods and came within entry No. 33 relating to tax-free items. The assessee's contention has been rejected throughout. 3.. The entry in question reads thus: "All mill-made fabrics made wholly or partly of cotton, staple fibre, rayon, artificial silk or wool including processed fabrics, made in the processing mills." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... still to be mill-made cloth. So far as towels are concerned, the same process more or less is adopted. We do not think, merely because a long sheet of mill-made cloth is cut into pieces and its sides are stitched, a different commodity emerges and what was mill-made cloth ceases to be so when it is in the shape of a bed sheet or a towel. There is no substantial alteration. It may be that for purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Commercial Tax Officer[1975] 36 S.T.C. 575., where the question for consideration was whether bed sheets, bed spreads, towels and napkins cut in consumer lengths from running pieces of cotton fabrics and stitched at both ends by a mill manufacturing cotton fabrics continued to be cotton fabrics within the meaning of entry 19 of the First Schedule to the Central Excises and Salt Act, 1944, and, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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