TMI Blog2007 (11) TMI 551X X X X Extracts X X X X X X X X Extracts X X X X ..... it is not possible for us to take a contrary view that such an item would not be taxable or that such an item has to be considered as textile fabrics including terry towels under Schedule "A", listing tax-free goods. Thus, the argument is wholly without substance and we have no hesitation to reject the same. The other arguments based on the judgment of the honourable Supreme Court would also not advance the case of the assessee-appellant because the external aid like the standardisation by Indian Standard Institute (ISI) could be resorted to in case where there is ambiguity or the item has not been included in the statute. Appeal dismissed. - 15 of 2007 - - - Dated:- 1-11-2007 - KUMAR M.M. AND AJAY KUMAR MITTAL , JJ. The judgment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were covered by tax-free entry and no tax was payable. However, the departmental authorities raised an objection. The appellant-assessee filed an application under section 85 of the VAT Act (A1) to the Excise and Taxation Commissioner, Union Territory of Chandigarh, for determination of the question as to whether HDPE/PP fabrics are covered by entry textile fabric given in entry 52 of Schedule A appended to the VAT Act. The assessee-appellant, inter alia, placed reliance upon a booklet issued by the Bureau of Indian Standards (A2), claiming that HDPE woven textile was qualified as textile. The Excise and Taxation Commissioner, vide his order dated September 20, 2006 (A3) opined against the appellant-assessee holding that the item dealt wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner has held it taxable at the rate of 12.5 per cent as he observed that these goods find no place in Schedule A or B of the Act of 2005. But entry 58 of Schedule B has not been considered in its correct perspective. List of goods appended to Schedule B contains an entry at 202 pertaining to packing material of all kinds. During the course of arguments neither party has denied that the goods in question are mainly used as packing material in its present form or even in its changed form, i.e., bags. Schedule B appended to the Act contains a List of Industrial inputs and packing materials (see entry No. 58 of Schedule B) which mentions HDPE at serial No. 162 as packing material item attracting value added tax at four per cent. Both, appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. [1984] 57 STC 188. He has further submitted that the specification made by the Indian Standard Institute (ISI) like annexure A 2, would also be relevant as has been held by the honourable Supreme Court in the case of Union of India v. Delhi Cloth and General Mills Co. Ltd. AIR 1963 SC 791. According to learned counsel, HDPE, which is in granular form is more like cotton, which can be subjected to various processes to become fabric. He has also stressed that in order to avail the benefit under entry 52 all that is required to be shown is that the goods in question has to be fabric, which would include artificial plastic material, which is pliable and is capable of being rapped, folded or wound around. He has pointed out that it is not n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ist of industrial inputs and packing materials (See entry number 58 of Schedule B) Serial No. Heading No. Description (1) (2) (3) 1 to 161 . . . . . . . 162 3901.10.90 High Density Polyethylene (HDPE) 163 to 201 . . . . . . 202 All packing material including plastic containers, tin containers and glass containers. 203 to 239A perusal of entry 58 of Schedule B would show that it pertains to industrial i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that those items would not be covered by entry 52, which covers textile fabrics including terry towels. The argument raised by Mr. Goyal, learned counsel for the assesseeappellant based on the judgments in the cases of Polyweb Private Ltd. [1982] 51 STC 364 (Mad) and Kanpur Plastic Pack (P.) Ltd. [1984] 57 STC 188 (All), has not impressed us and nor we are inclined to undertake a detailed examination of the aforementioned argument because a perusal of the aforementioned judgments would show that HDPE was part of the statutory schedule or list. On account of absence of HDPE in any of the list, their Lordships' of the Madras High Court and the Allahabad High Court have resorted to the interpretation of that expression. Even the quest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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