TMI Blog2021 (5) TMI 933X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and pillow covers . The expression other textile made ups must be read ejusdem generis with the articles which precede it and should hence comprehend goods of the same class and description. The general entry other textile made ups must receive a meaning and connotation bearing in mind the preceding items of Entry 16. Hence, it is not possible to accept the view of the first appellate authority that the product falls within the purview of Entry 16 of Schedule II. The product would fall for classification under Serial 1 of Schedule V which is a residuary entry which covers all goods except those which are mentioned and described in Schedules I, II, III and IV - the judgment of the Tribunal as well as of the first appellate authority would have to be set aside. Appeal allowed. - Civil Appeal No. 793 of 2021 with C.A. Nos. 794-795 of 2021 - - - Dated:- 2-3-2021 - Dr. Dhananjaya Y. Chandrachud and M.R. Shah, JJ. Shri Bhakti Vardhan Singh, AOR, R.K. Raizada, Sr. Advocate, Ms. Nidhi and Ms. Manvi Dixit Sharma, Advocates, for the Petitioner. ORDER Civil Appeal No. 793 of 2021 [Arising out of SLP (C) No. 3885 of 2021]. Delay condoned. 2. Leave granted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he nature has remained the same. The cloth, threads, stars, beads are used as the material... 6. The dealer was assessed to a tax of ₹ 99,42,870 for assessment year 2009-2010, by treating the product as an unclassified item under Schedule V of the UP VAT Act, 2008, under which the rate of tax is 12.5%. The respondent filed an appeal [Appeal No. 83/2013] before the Additional Commissioner, Gr.-2, (Appeals) IV, Ghaziabad. By an order dated 13 February, 2013 the first appellate authority partly allowed the appeal and classified the goods as textile made ups which are subject to a duty of 4% under Serial Number 16 of Schedule IIA. The order passed by the appellate authority was assailed by the appellant and by the respondent before the Commercial Tax Tribunal ( Tribunal ). By an order dated 27 April, 2019, the Tribunal allowed the appeal filed by the respondent and rejected the appeal of the Revenue. The product sold by the respondent was classified as a textile within the meaning of Entry 21 of Schedule I and was, therefore, held to be exempt from tax. The appellant unsuccessfully challenged the decision in a revision before the High Court which has been dismissed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t goods mentioned or described in Schedule-I, Schedule-II, Schedule-III and Schedule-IV of this Ordinance. 9. The issue which falls for consideration in the present appeal is whether the commodity which is described as an embroidered ladies suit , which the respondent claims to be unstitched, would fall within the description of a textile under Entry 21 of Schedule I (as the respondent asserts). The other competing entries are Entry 16 of Schedule II which is other textile made ups and the residuary entry in Schedule V. 10. We would first deal with the question as to whether the product falls within the description of Entry 21 of Schedule I. Before dealing with the nature of the product, it would be material to advert to the definition of the expression manufacture in Section 2(t) which reads as follows : 2(t) manufacture means producing, making, mining, collecting, extracting, mixing, blending, altering, ornamenting, finishing, or otherwise processing, treating or adapting any goods; but does not include such manufacture or manufacturing processes as may be prescribed; 11. The definition of the expression manufacture is in broad and comprehen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintained. The Assessing Authority taxed the product under the residuary entry in Schedule V and subjected it to at the rate of duty of 12.5%. The First Appellate Authority on the other hand took the view that the product should be classified under Entry 16 of Schedule II and would be subject to the rate of 4%. The residuary entry would be attracted if no other specific entry applies. The appellant had also challenged the order of the first appellate authority before the Commercial Tax Tribunal. Entry 16 of Schedule II refers to bedsheets (other than unstitched bedsheets), pillow covers and other textile made ups . This description in the English version is also in accordance with the text in Hindi. 14. Mr. R.K. Raizada, Learned Senior Counsel appearing on behalf of the appellant submits that the expression other textile made ups is not a stand-alone entry, but occurs in the same entry together with bedsheets (other than unstitched bedsheets) and pillow covers. Hence, the Learned Counsel submitted that the expression other textile made ups should be read in conjunction with the other goods which are specified in Entry 16. There is merit in the submission which has been u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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