1979 (2) TMI 186

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..... ould fall under item No. 7 of the Third Schedule to the Kerala General Sales Tax Act, 1963, and so liable to be exempted? Is the reasoning and conclusion of the Appellate Tribunal to hold that 'calico cloth' would fall under item No. 7 of the Third Schedule, valid and justified in law? (B) Is the claim of 'sales returns' by the assessee for the years 1972-73 and 1973-74, as excludible from the taxable turnover, valid and justified in law? Has the assessee proved that the inclusion of the turnovers claimed under these items are liable to be deducted (or excludible) under rule 9(b)(ii) of the Kerala General Sales Tax Rules, 1963? Is not the decision reported in Traders and Traders v. State of Tamil Nadu[1977] 40 S.T.C. 289 (F.B.). applicabl .....

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..... year itself. That decision is against the revenue. As far as the second question is concerned, therefore, the view taken by the Tribunal is correct and calls for no interference. 2.. In regard to the first question what has to be considered is whether "calico cloth" would fall within "cotton fabrics" as used in item 7 of the Third Schedule to the Act. Item 7 of the Third Schedule to the Act reads: "Cotton fabrics, woollen fabrics and rayon or artificial silk fabrics as defined in items Nos. 19, 21 and 22 respectively of the First Schedule to the Central Excises and Salt Act, 1944." That should focus attention on the definition of "cotton fabrics" in items Nos. 19, 21 and 22 of the First Schedule to the Central Excises and Salt Act, 194 .....

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..... is fundamentally different. In the Kerala case[1976] 37 S.T.C. 221., it was held that caristrap rayon cord strapping is a different item from articles made out of rayon cloth. These decisions, which we have referred to, disclose the principle in the light of which the decision of this question has got to be considered and approached. The Tribunal, we are afraid, has not chosen to approach this question from the standpoint of the principles in the light of which these decisions have examined the question. It is, therefore, necessary to direct the Tribunal to consider this matter afresh and to render its decision in the light of the principles referred to above. We allow this revision and set aside the order of the Tribunal and send the mat .....

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