TMI Blog1980 (7) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... The short question that arises in this case is whether mill-made handkerchiefs are cotton fabrics falling within the scope of entry No. 19 of the First Schedule in the Central Excises and Salt Act sale of which be exempt from the levy of sales tax under the Kerala General Sales Tax Act by virtue of the exemption conferred by Item 7 of the Third Schedule to the said Act. The Third Schedule of the K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fabric if it contains- (i) 40 per cent or more by weight of wool; (ii) 40 per cent or more by weight of silk; (iii) 60 per cent or more by weight of rayon or artificial silk; or (iv) 50 per cent or more by weight of jute (including Bimlipatam jute or mesta fibre) : Provided that in the case of embroidery in the piece, in strips or in motifs and fabrics impregnated or coated with preparat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and upheld the claim put forward by the assessee that the turnover of handkerchiefs is exempt from levy of sales tax. The State has preferred this revision petition challenging the correctness of the said view. 3. The specific plea put forward by the assessee before the assessing authority as well as before the Appellate Assistant Commissioner was that the handkerchiefs in question had been sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holly out of cotton. The mere fact that as part of the process of manufacture the edges of the cloth have been stitched will not in any way affect its character as a cotton fabric. In fact such process of stitching is essentially involved in the manufacture of several of the items enumerated in the inclusive portion of the definition of cotton fabrics contained in entry No. 19 of the First Schedul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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