1968 (6) TMI 58

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..... ood at the relevant point of time. That item reads: "FIFTH SCHEDULE Goods exempted from tax under section 8. Sl. No. Description of goods. 8A. All varieties of textiles, namely, cotton, woollen or silken including rayon, art silk or nylon whether manufactured in mills or power-looms including hosiery cloth in lengths but exclusive of pure silk." All varieties of textiles, namely, cotton, woollen or silken including rayon, art silk or nylon whether manufactured in mills or power-looms including hosiery cloth in lengths but exclusive of pure silk." The Commercial Tax Officer was of the opinion that since sarees in respect of which he recognised the exemption were not made out of pure silk bu .....

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..... estored that of the second Commercial Tax Officer in the exercise of the power conferred on him by section 22A of the Act. He, however, accepted the statement made on behalf of the appellant in his written objections produced before him that the sarees were woven "partly with pure silk yarn and partly with art silk yarn and with kota lace". But he thought that the sarees were pure silk sarees, and that, therefore, the turnover relating to them was chargeable to tax at four per cent. In these appeals, Mr. Srinivasan appearing for the appellant, made more than one submission. One of them was that the view taken by the Commissioner that the sarees were pure silk sarees, and therefore, did not fall within item 8A of the Fifth Schedule to the .....

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..... ugh to observe that with respect to that question, no one made any investigation. But what is, however, clear is that everyone including the second Commercial Tax Officer who embarked upon a revision under section 12A of the Act had no doubt in his mind that the material employed for the manufacture of the sarees did not consist only of pure silk yarn but also included artificial silk yarn and gold thread. It is unnecessary for us to consider in this case, the effect of the employment of gold thread for the borders of the sarees since we are of the opinion that the use of artificial silk yarn for the manufacture of the sarees, even though such yarn was used for the "buttas", took the sarees out of the category of "pure silk " within the m .....

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