TMI Blog1995 (4) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... n the goods in question? 2.. The petitioner is a dealer under the Karnataka Sales Tax Act, 1957 (for short, "the Act") having a mill in Gokak taluk of Belgaum district. One of its activities is manufacture of cotton tyre cord, which is also known as tyre cord warp sheet. Tyre cord was used to be assessed to sales tax under entry No. 7 of the Fourth Schedule to the Act. Tyre cord was also assessed to Central excise duty under the provisions of the Central Excises and Salt Act, 1944. 3. In Delhi Cloth General Mills Co. Ltd. v. State of Rajasthan [1980] 46 STC 256 the Supreme Court held that tyre cord was a fabric and not a yarn. Therefore, the question that arises for consideration is, whether the action of the sales tax authorities u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing entry was inserted with effect from January 1, 1970: 7A. Tyre cord fabrics which have not been subjected to additional duty of excise under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (Central Act 58 of 1957); (b) Entry 7A was omitted by Karnataka Ordinance No. 6 of 1982 with effect from April 1, 1979. The Ordinance was replaced by Karnataka Act. (c) In Fifth Schedule the following entry was added: 8A. All varieties of textiles namely, cotton, woollen, silk or artificial silk including rayon or nylon, whether manufactured in mills, powerlooms or handlooms and hosiery cloth in lengths which have been subjected to additional excise duty under the Additional Duties of Excise (Goods of Special Importa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubjected to additional excise duty. Though the amount could not be recovered from the petitioner on the ground that it was barred by limitation, the view of the department is that since additional excise duty has not been paid, the question of exemption would not arise in the case. It is submitted that there are retrospective amendments to the Fourth and Fifth Schedules to the Act and use of the expression "subjected to" would not amount to actual payment of tax, which would only mean that the goods in question were made liable to duty. It is submitted that irrespective of the fact whether the excise duty has been recovered from the petitioner or not, the goods were subjected to additional excise duty and therefore the provisions of entry N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch tax had been collected by those authorities which would accrue to the benefit of the State fund. If this aspect is borne in mind the object of granting exemption would become clear. When interpretation of an expression arises and such expression is not defined in the Act, the meaning most suitable to the situation will have to be attributed to the expression used. In the context of this case, the meaning of the expression "subjected to" will have to be understood as made to suffer. Understood thus, the view taken by the authorities below appear to us to be correct. 9.. However, the learned counsel for the petitioner sought to rely upon the decisions in: (1) [1975] 35 STC 109 (Kar) (Sha Pannalal Pemraj Co. v. Commercial Tax Officer) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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