TMI Blog1999 (9) TMI 936X X X X Extracts X X X X X X X X Extracts X X X X ..... as the questions involved in all these writ petitions were similar. We also propose to dispose of them by one order. 2.. Some of the writ petitioners have not chosen to file the appeals. There were 33 writ petitioners, out of whom only 17 have filed the appeals. 3.. The appellants are either the manufacturers or traders of "narrow woven fabrics". Their place of manufacture or business is situated in the State of Karnataka. As per averments made in the writ petition, the narrow woven fabrics are manufactured on looms known in textile parlance as shuttle or shuttleless looms. The cloth which comes out of such looms is in running length. The narrow woven fabrics are universally known, recognised and understood not only in the textile ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uties of Excise (Goods of Special Importance) Act, 1957 was amended by Finance Act, 1995 and entry 58.06 was worded as under: "Narrow woven fabrics (other than tulles, other net fabrics and goods of heading Nos. 58.07, 58.08, 58.09 and 58.10)." The expression narrow woven fabrics in entry 58.06 was explained as under: "For the purposes of heading No. 58.06, the expression 'narrow woven fabrics' means: (a) Woven fabrics of a width not exceeding 30 cm., whether woven as such or cut from wider pieces, provided with selvedges (woven, gummed or otherwise made) on both edges; (b) Tubular woven fabrics of a flattened width not exceeding 30 cm.,; and (c) Bias binding with folded edges, of a width when unfolded not exceeding 30 cm." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms manufactured by the appellants-writ petitioners would fall under entry No. 58.07 and therefore liable to pay the sales tax. 6.. Intelligence Wing of the Department of Sales Tax of Karnataka visited number of premises. Some of the manufacturers-traders were required to produce their books of accounts. Manufacturers/traders being of opinion that items duly sold by them are exempt from sales tax, did not produce the books of accounts. The concerned officers who visited the premises of the appellants, issued notices under section 29(1)(e) for levy of penalty on failure to keep true and complete accounts and 29(2)(c) for "fraudulent evasion" of tax under the KST Act by submitting untrue return or not being already an assessee under this Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed or otherwise made) on both edges as given in entry 58.06? 12.. Learned single judge proceeded to decide the controversy between the parties on the question of law without taking on record the factual aspects which could only be determined by the assessing authorities. In normal course, the appellants/petitioners should have submitted to the jurisdiction of assessing authorities to raise their objections. The assessing authorities, on the raising of the objections by the appellants/petitioners, would have framed assessment in accordance with law and the appellants/ petitioners thereafter would have had the remedy of filing appeal, etc. Factual aspect of the controversy between the parties has not been determined. Section 29(2)(c) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purview of KST Act because of the amendment of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 by the amending Finance Act of 1995. According to the authorities, they were brought within the purview of KST Act with effect from March 16, 1995. The manufacturers/traders under the circumstances, could legitimately think that their item fell under entry 58.06 and not 58.07 and may not have produced their books of accounts before the intelligence authorities. Similarly, it cannot be said they had fraudulently avoided to pay the sales tax. Notices under section 29(1)(e) and 29(2)(c) are therefore quashed at this stage. 15.. The order of the learned single Judge is set aside. The appellants/ petitioners are directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng into consideration the fresh objections filed by the manufacturers-traders. 17.. We have noted that there were 33 writ petitioners, out of whom only 17 have filed the appeals. This order is being passed in respect of these 17 writ petitioners. Since we are setting aside the order of the single Judge, the order passed in this case would be applicable mutatis mutandis to the writ petitioners who have not filed the appeals. This has been done in order to avoid filing of appeals later by those writ petitioners who have not preferred appeal, for getting similar relief. Manufacturers/traders shall be at liberty to file objections within six weeks. In case such objections are filed they be considered without objection to the limitation/time p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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