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TMI Blog1976 (5) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... als by special leave from the judgment of the High Court of Rajasthan between the same parties. The three cases before us raise the same question of law. It is: Do the goods called "rayon tyre cord fabric" sold by the Delhi Cloth and General Mills Co. Ltd. to manufacturers of tyres, who use it for the purpose of impregnating it with rubber, fall under entry 18 of the Schedule of the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as "the Act"). The schedule mentioned above gives a list of goods on the sale or purchase of which no tax is payable under the Act. The relevant entry 18, which was omitted in 1973, reads as follows: "18. All cotton fabrics, rayon or artificial silk fabrics, woollen fabrics, sugar and tobacco, as defined i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacture of a fabric. After indicating the manner in which and the substance out of which "rayon tyre cord fabric" is made and its composition, the petition sets out item 22 of the First Schedule of the Central Excises and Salt Act, 1944, as the applicable entry covering the goods manufactured by the petitioner. This item reads as follows: "'Rayon or artificial silk fabrics' means all varieties of fabrics manufactured either wholly or partly from rayon or artificial silk and includes embroidery in the piece, in strips or in the motifs and fabrics impregnated or derivatives or of other artificial plastic materials, but does not include any such fabrics- (i) if it contains 40 per cent or more by weight of wool; (ii) if it contains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d fabric". The petitioners have, however, come up to this court directly against the order and provisional assessment dated 21st November, 1972. It also appears from the writ petition that proceedings for the assessment year 1972-73 are still pending before the Commercial Tax Officer. Civil Appeals Nos. 43 of 1973 and 44 of 1973 by special leave are directed against a common judgment of a Division Bench of the High Court of Rajasthan, given on 27th October, 1972, dismissing the appellants' writ petitions against the assessment order dated 26th March, 1971, for the years 1968-69 and 1969-70 made by the Commercial Tax Officer. The view of the Commercial Tax Officer, questioned by the petitioners, was that the goods now sought to be taxed are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w material for another fabric which ultimately emerges by subjecting the goods manufactured by the Delhi Cloth Mills to a process of impregnating with rubber. A sample of the tyre cord fabric was actually produced before us. It is said that the "fabric " is manufactured in the same way as cloth is woven on looms. It consists of cords which could be said to constitute warps, running lengthwise, and wefts, running breadth-wise. But, the spaces left between them are so wide, presumably for purposes of impregnation with rubber, that it may not pass for an ordinary "fabric" like one of those mentioned in entry 19 of the First Schedule to the Central Excises and Salt Act, 1944, such as "tussors", "corduroy", "gaberdine", "denim". Indeed, if the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods under consideration become a "textile fabric". The meaning of the term "textile", given in the Oxford Dictionary, is: "A woven fabric; any kind of cloth." It must acquire a body and a texture. Presumably it is not just the skeleton of a textile. Apparently, it is more than that. But, against pushing this point of view too far it may be urged that in the technical and commercial parlance we are dealing with a "fabric". It is, therefore, difficult to find fault with the view of the High Court that there is no error apparent on the face of the record and that the taxing authorities should be left to determine whether the "tyre cord fabric" is more correctly capable of being described as a fabric or as merely cord pretending to pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth which is the "end-product" for the mills, which manufacture cloth, but it becomes the raw material for tailors and for those who make ready-made clothes to sell them. This argument overlooks that it is not so much the point of manufacture at which the mills sell their own product, which determines the nature of goods, which are entitled to exemption, but it is the stage reached by this product, in the process of manufacture or fabrication of a "textile", which should decide the question. As we have already indicated, the context in which the entry occurs shows that it is meant for "textile" fabrics and not for any kind of fabric. Therefore, even if the tyre cord fabric may be the end-product for the Delhi Cloth Mills, the crucial questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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