1964 (11) TMI 91 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of whether palavs fall under entry 47(i) of Schedule B to the Bombay Sales Tax Act, 1953.

Analysis:
The judgment dealt with the question of whether palavs, woven on handlooms and used for decorating saris, fall under entry 47(i) of Schedule B to the Bombay Sales Tax Act, 1953. The Sales Tax Officer, Assistant Commissioner, and Deputy Commissioner held that palavs fall under this entry as they are akin to borders attached to saris. The Sales Tax Tribunal also affirmed this view, stating that even though palavs cannot be used independently as garments, they are handloom cloth. The Tribunal considered entry 47(i) as a special entry for braids, borders, laces, and trimmings. It concluded that palavs, being considered as borders, laces, or trimmings in popular parlance, fall under this entry. The Tribunal emphasized that the use of the cloth is irrelevant in determining its classification under the entry.

The applicants argued that palavs do not fit within the scope of entry 47(i) as they are distinct from braids, borders, laces, or trimmings. They contended that palavs have a unique meaning in the market and should not be classified under the mentioned categories. However, they acknowledged that the Legislature intended to encompass various categories of articles under entry 47(i) for taxation purposes. The judgment highlighted that the legislative intent was to have a comprehensive entry covering all articles attached to garments for embellishment. The court analyzed the definitions of "border" and "trimmings" from dictionaries to support the inclusion of palavs under entry 47(i). It emphasized that palavs, as appendages to saris for decoration, would fall within the ambit of this entry.

The court rejected the argument that palavs have acquired a secondary meaning and should be excluded from entry 47(i. It differentiated this case from instances where specific articles may have primary and secondary meanings. The judgment emphasized that entry 47(i) lists categories of articles rather than specific individual items. It concluded that palavs, being used solely for embellishment and not independently as garments, would categorically fall under the classification of trimmings. The court agreed with the Tribunal's decision that palavs are covered by entry 47(i) of Schedule B.

In conclusion, the court answered the first question in the affirmative, stating that palavs fall under entry 47(i). As a result, the second question regarding the precedence of entry 47(i) over entry 10 of Schedule B did not need to be addressed. The applicants were directed to pay the costs of the reference in each case, and the references were answered accordingly.