9911796707
TMI Blog1975 (11) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged mis-classification. 2,000.00 at 3-1/2 per cent 2. The appellant is a partnership firm dealing in textiles, sarees and ready made garments. During the year, it reported a total and taxable sales of Rs. 12,98,694.05 and Rs. 82,905.47 respectively. The assessing authority, found that the accounts were not acceptable. He also did not accept the classification of goods for purpose of exemption in rates of tax in respect of embroidered sarees. Each of the disputed items is discussed separately below. 3. The first addition relates to maintenance of accounts for sales of readymade garments. The appellant has not maintained any day-to-day stock account in respect of the same. The appellant had disclosed sales of Rs. 70,540.7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use the net purchase value of the power-loom saree was only to the extent of Rs. 8,831.05, while the sales were only of Rs. 8,009.65. He therefore suspected misclassification between non-taxable and taxable items. It was for these reasons that he added Rs. 2,000 to the reported turnover. Here also, complete details are not available in the assessment records, while the appellant in the grounds of appeal alleges that there are similar details which would show tally. For the same reasons mentioned in the preceding paragraph, we are of the view that this matter should also go to AAC for a fresh disposal. 5. The last contention relates to the classification of embroidered sarees under the existing entries. It is the appellant s claim that emb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the subject matter of the dispute were produced before us. The appellant purchase plain sarees and have them embroidered for sale. It is actually not necessary for us to go into all the case laws cited by both the parties. The law, in our opinion, is well established. Part of the confusion arose, in the assessing authority and the AAC citing decision relating to embroidered cloth etc. on Entries under other ST Acts which are not similar with the law in this State. As for the law in this State is concerned, the Entry is rather very wide. The use of the words "all varieties" makes it a comprehensive entry. Besides, it is not necessary that the textiles should be of cotton alone. It can be either wholly or in part of cotton, staple fibre, r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following words : "In the circumstances stated by the Board of Revenue (CT) in the reference cited, the Government agree with the views expressed by the Board that the Hakoba Embriodery cloth has to be treated as textiles falling under item 4 of the Third Schedule to the Madras General Sales Tax Act, 1959 and exempted from tax. The Board is requested to issue suitable instructions to the subordinate authorities in the matter." Subsequently, the Madras High Court in an unreported decision in Kishinchand Chellaram Private Limited vs. Joint Commercial Officer in W.P. 1095/68, dt. 6th Feb., 1969 held as under : "In view of Kittappa Dress Manufacturing Embroidery Works vs. State of Madras which is against the State, this petition is acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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