9911796707
TMI Blog1975 (12) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... Total 1,21,569.06 2% 31,069.29 . 633,53.26 6,77,138.48 . . at 3% . Taxable Taxable . . 90489.80 at . 1,26,252.34 1,38,877.56 . . 3-1/2% 1972-73 Total Total 1,71,114.85 2% 3-1/2% . 1,14,777.68 1,17,240.68 . . . . Taxable Taxable . . . . 1,50,430.95 1,71,114.85 . . . The original assessments were completed adopting 2% as rate of stiff collar in view of G.O. Press 4435, Revenue dt. 30th Nov., 1962 which reads as under : "Order: Under the Madras General Sales Tax Act, 1959 the tax payable on the sales of ready-made garments and handwoven quilt beds and pillows was reduced from 2 per cent to 1 per cent (multi-point) with effect from 1st April, 1959. The Government decided to levy tax at the rate of 1 pre cent on all read-made goods (both garments and non-garments) made of cloth instead of restricting the concession to garments, handwoven quilt beds and pillows alone. The notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made in fixed sizes, not measured specially for the person and the "Made of" means to construct, bring into being to product to bring about things from, out from. So on the face of the meaning it can be said that the stiff collar is a readymade goods which was made in order to fix them in the shirts etc., without measuring or special purpose, but a standard size. So the appellants are dealing in stiff collar which is read-made goods. According to the G.O. in which the notification was issued, the ready-made goods made of cloth is subject to concessional rate of 2 per cent only. Now the question is whether the stiff collars sold by the appellants are made of cloth. When the appellants were asked to prove whether this is made of cloth only. But they could not be able to do so. It is now found that the Board in its B.P. Rt. 589/13th Feb., 1975 has explained the case of the appellants on his application for clarification on this point and informed the appellants that the sample of stiff collar sent by them contains plastic goods also and that therefore it is subject to multi point. It is therefore held that the sales of stiff collars are not wholly made of and that they are subject to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile a specimen before him. He also claimed that the AAC was in error in claiming that the collar did not contain cloth only. He pointed out that a leather suit case may contain a plastic handle or a steel lock; but these do not take away the character of the leather suit case as leather goods. Similarly a readymade shirt may contain plastic buttons but that would not disentitle the shirt being considered as cotton garments. Under the circumstances he contended that it was not correct to deny the connection to which it was entitled to. He contended that even pillows, quilt, beds etc. were specifically exempted by the order annexed to this notification. Stiff collars, after all, form part of a readymade garment and it will be unreasonable to claim that is not made of cotton when the shift which ultimately contains the collar is rightly acknowledged as a readymade garment made of cloth. As regards the Board s clarification in B.P. Rt. 589 dt. 13th Feb., 1975 it was stated that the clarification was not issued on the basis of any study of the materials. The appellant complied to the Board against the action of the revising authority, but got a letter supporting the assessment apparentl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is case. Actually in one case, concessional rate was applied by the assessing authority himself and in the other, the Tribunal did not allow the appellant to raise the claim for concession since it was not raised before the AAC. It was observed in both cases that it is cloth which was converted into collars and in one of them, the assessing authority himself taxed it at concessional rate while in the other though it was taxed at multipoint rate, the appellant had not made the alternative claim for concessional rate. 4. We have carefully considered the records as well as the arguments. We have seen a specimen of the stiff collar and have taken the various pieces apart. We find that a stiff collar is made of many pieces. Outer layer is of starched long-cloth. The inner layer is cut into pattern from processed material made of buckram cloth attached to a polythene band. There are similar processed pieces at two corners. Two plastic "bones" (clips) are placed at the two corners to lend support to the stiffness. The entire purpose is to stiffen the collar so that it retains its shape curing wear. This is achieved by attaching the polythene bands to the buckram cloth (by a process of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... losure on appellant s part. "What has happened is merely a change of opinion. It is doubtful whether revision can be followed merely on such change of opinion. But however we find that even on merits there is absolutely no material to justify such change of opinion. The learned AAC says that the Board clarified the matter. The Board merely declined to interfere and gave the views of the assessing authority in support of the stand when the appellant sought Board s extra judicial intervention. Besides the sales were prior to clarification; moreover the learned State Representative has not placed any material or independent enquiry to justify the view taken. Further, the view that the presence of some plastic material in the stiff collar, ipso facto, prevents it being considered as readymade goods made of cloth cannot be correct. After all, as pointed out by the learned Authorised Representative a plastic handle or a steel lock does not make a leather suit case into anything other than leather goods. If the predominant material is cloth, the resultant product has to be treated as mode of cloth. Again the stiff collar when it is stitched into a readymade garment is treated as part or r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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