1984 (3) TMI 356 - HC - VAT and Sales Tax

Summary

Issues: Interpretation of exemption notification for sales tax on plain HDPE fabrics.

The High Court of Allahabad heard a revision filed by the Commissioner of Sales Tax against a Sales Tax Tribunal order regarding the exemption of plain HDPE fabrics from sales tax. The Tribunal had accepted the plea that plain HDPE fabrics fell under the category of "artificial silk" as per a specific notification exempting certain fabrics from sales tax. The Commissioner had argued that plain HDPE fabrics did not qualify as artificial silk. The Tribunal, following the principle of interpreting terms based on popular meaning, found that plain HDPE fabrics were known as artificial silk in the trade. Based on this finding, the Tribunal concluded that plain HDPE fabrics were exempt from tax as per the notification. The High Court upheld the Tribunal's decision, dismissing the revision with no costs.