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1992 (1) TMI 318

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..... 14, 1957, issued under section 8(5) of the Central Sales Tax Act. The exemption in the assessment order was granted under section 8(2A) of the Central Sales Tax Act for which it was held by the Board of Revenue that the assessee is not entitled to claim the exemption under section 8(2A) of the Central Sales Tax Act, but is entitled for exemption under the notification dated December 14, 1957, issued under section 8(5) of the Central Sales Tax Act. The contention of Mr. Bapna, learned counsel on behalf of the assessing authority, is that the order of the Board of Revenue is incorrect for the three reasons: (i) The Notification dated December 14, 1957, issued under section 8(5) of the Central Sales Tax Act has been impliedly superseded by the notification dated July 1, 1958 issued under section 4(2) of the Rajasthan Sales Tax Act. (ii) That before the Supreme Court in the assessee's own case reported in [1980] 46 STC 256 (Delhi Cloth General Mills Co. Ltd. v. State of Rajasthan) the matter was considered in the light of the entry of the Schedule to the Rajasthan Sales Tax Act and since by a subsequent legislation, i.e., Act No. 4 of 1980 the proviso was added to the entry fo .....

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..... ales made in the course of inter-State trade, or commerce by any dealer having his place of business in the State, from such place of business, of tyre cord fabrics and/or warp sheets shall stand superseded. The notifications issued under the Rajasthan Sales Tax Act, are as under: (1) F. 5(48)E T/57/I dated December 14, 1957: In exercise of the powers conferred by sub-section (2) of section 4 of the Rajasthan Sales Tax Act, 1954 (Rajasthan Act XXIX of 1954), the State Government being of the opinion that it is necessary in the public interest so to do, does hereby exempt the sale of, (i) sugar, (ii) tobacco and its products, and (iii) all textiles, whether cotton, woollen or silken, including rayon, art-silk or nylon but exclusive of pure silken cloth of all varieties (howsoever manufactured). from payment of the tax payable under the said Act on and from the fourteenth day of December, 1957, on the following conditions, namely: ................ (2) F. 5(48)E T/57 dated July 1, 1958: In exercise of the powers conferred by sub-section (2) of section 4 of the Rajasthan Sales Tax Act, 1954, (Rajasthan Act XXIX of 1954) the State Government being of the opinion th .....

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..... se of the powers conferred by sub-section (2) of section 4 of the Rajasthan Sales Tax Act, 1954 (Rajasthan Act 29 of 1954), and in supersession of all previous notifications in so far as they relate to the exemption of goods mentioned in this notification, the State Government being of the opinion that it is expedient in the public interest so to do, hereby exempts from tax the sale or purchase of cotton fabrics, fabrics made from man-made fibre, sugar and tobacco as defined in the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (Central Act 58 of 1957): Provided that in case of tyre cord fabrics or warp sheets, this exemption shall apply only if the additional excise duty is leviable on them under the said Act and such goods have not specifically been exempted from the said duty and the dealers thereof furnish proof to the satisfaction of the assessing authority that such duty has been paid. (6) F.4(18)FD/Gr. IV/82-13 dated May 29, 1982: In exercise of the powers conferred by sub-section (2) of section 4 of the Rajasthan Sales Tax Act, 1954, the State Government being of the opinion that it is expedient in the public interest so to do, hereby exempts from .....

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..... m textile given in the Oxford Dictionary is: 'A woven fabric; any kind of cloth'. It must acquire a body and a texture". The assessing authority was directed to undertake enquiry in the light of the decision given therein which included the determination whether the product constituted a "fabric" which is a "textile" by considering the stage reached in the process of manufacture or fabrication of a textile. Subsequently, in [1980] 46 STC 256 in the case of (Delhi Cloth General Mills Co. Ld. v. State of Rajasthan) their Lordships of the Supreme Court has observed that there is no escape from the conclusion that by and large a tyre cord fabric is regarded as a textile fabric. It was held that the daily life of the average citizen is profoundly affected by the automobile. It is futile to suggest that the tyre plays a less substantial role than other popular commodities in modern life and, therefore, it is, but a short step to recognising the status of what goes into the manufacture of a tyre-the rayon tyre cord fabrics-as "goods of special importance". It was further held that after considering entry 18 of the Schedule to the Rajasthan Sales Tax Act, even if the appellant did no .....

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..... by their Lordships of the Supreme Court in the petitioner's case will not cover the present dispute since the entries in the Central Excises and Salt Act have been amended and in common and commercial parlance the tyre cord fabric is not textile. Mr. Mehta appearing on behalf of the respondent has pointed out that the notification dated July 1, 1958, was superseded by notification dated January 2, 1981 only and the matter is concluded by the decision of their Lordships of the Supreme Court. I have considered the arguments of both the parties and have gone through the record. It is true that before their Lordships of the Supreme Court the Notification dated December 14, 1957, issued under section 8(5) was not considered but on that account the assessee is not estopped from raising the legal plea for the first time before the Board of Revenue that it is entitled for exemption on an alternative ground also. There may be a legislation by incorporation and in such a situation when a second legislation operating in the same or similar field is adopted then the subsequent amendment in the latter Act repealing the earlier provision of that Act would be considered to have been adopted b .....

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..... d section, but this has to be done by specific exercise of power. Section 8(5) is not like section 8(2A) of the Central Sales Tax Act where the notification issued by the State Government can be considered to have been adopted even with regard to their future amendments. The authorities pointed out by Mr. Bapna have no relevance since in none of these authorities any court has held that after exercising the power under one particular Act if there is amendment in another Act when both are operating as different field the subsequent amendment of the latter Act will be applicable to the adopting Act. The various provisions of the local Act have been adopted under section 9 of the Central Sales Tax Act which is incorporation by reference and where the subsequent amendment in the local Act will also be made applicable under the Central Sales Tax Act, but that adoption under section 9 is complete adoption in respect of the matters enumerated under section 9. In the present case there is no adoption and only a power has been conferred upon the State Government to issue a notification and if that power is exercised by the State Government then unless the State Government again modifies or .....

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