TMI Blog1979 (9) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... No. ST-4064/X-960(4)-58 dated 25th November, 1958, the Government of Uttar Pradesh in exercise of powers under Section 4(1) of the act directed that certain commodities shall be exempt unconditional, from the payment of tax under the U.P. Sales Tax Act. Item 3 of this notification which is relevant for this controversy is in the following terms :- 3. Textiles of the following varieties manufactured on powerlooms, excluding durries, carpets, druggets, hosiery goods and readymade garments but including the goods specified in the annexure hereunder ; a) Cotton fabrics of all varieties. 3. The contention of the assessee before the Commissioner of Sales Tax was that collars and the shoulder straps made by the assessee were cotton fabric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture, the fused collars and the shoulder straps did not alter its character of a cotton fabric. He referred me to a decision reported in 1972 Selected Decisions volume XIII page 301. This is a publication issued by the Government of Maharashtra by the sales tax department and probably contains the decision of sales tax authorities constituted under the Bombay Sales Tax Act. The question that arose for decision in that case was as to whether Bondrex Collar Lining manufactured by the assessee fell within the description of cotton fabrics within the meaning of entry 15 of Schedule A to the Bombay Act. The authority held that as Buckram cloth and the laminated cloth individually fall within the expression of cotton fabric, the cut pieces of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u General Sales Tax Act, which granted exemption to all varieties of textiles. In the alternative it claimed exemption on the ground that they were declared goods under Section 14 of the Central Sales Tax Act. Section 14(iia) of the Central Sales Tax Act is to the following effect:- Cotton fabrics as defined in item No. 19 of the First Schedule to the Central Excise and Salt Act, 1944. 5. Item No. 19 of the First Schedule to the Central Excise and Salt Act, 1944, runs as under :- Cotton fabrics' mean all varieties of fabrics manufactured either wholly or partly from cotton and include dhoties, sarees, chadders, bedsheets, bed-spreads, counterpanes, table cloths, embroidery in the piece in strips or in motifs and fabrics impregn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but including the goods specified in the annexure hereunder. (a) Cotton fabrics of all varieties. 9. A bare perusal of this notification clearly indicates that before exemption can be claimed in respect of the textiles it must be manufactured on power-looms. In the present case it may be conceded that the raw material utilised for making the fused collar is manufactured on power looms, although there is no clear indication in this respect. But the exemption is not being claimed in respect of the convenient of the fused collar but for the fused collar itself. The method of manufacturing the fused collar has already been indicated earlier and it clearly shows that fused collars are not manufactured on powerlooms. This being so the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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