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TMI Blog1982 (1) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... st as per entry serial Nos. 19 and 33 of the tax-free list or are to be taxed under entry serial No. 25 of the luxury list? " 2.. The assessee is a dealer in mill-made and handloom cloth, hosiery goods, satranjis, etc. In the course of assessment, a question arose as to whether satranji would be tax-free article or being carpet would be taxed as luxury goods. The Member, Additional Sales Tax Tribunal, ultimately in second appeal by the assessee, came to hold that satranji, asani and duree were all cotton fabrics and did not belong to the category of carpet as defined in entry serial No. 25. Yet, he felt bound by a Bench decision of this Court in the case of State of Orissa v. Modi Stores, Cuttack [1969] 24 STC 255 and observed: "But as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Handloom [1972] 29 STC 554, where the question that came for consideration was whether satranji, duree and the like would be classified as carpets. At page 557 of the reported decision, the Allahabad High Court stated: "On behalf of the department a reference was made to Vrajlal Bhukhandas v. State of Gujarat [1964] 15 STC 437. The question before the Gujarat High Court was as to whether satranji fell within the classification of handloom cloth of all varieties. It was held in that case that although satranji was woven on handloom out of cotton yarn, yet it could not be regarded to be 'handloom cloth' because in the popular meaning satranji was a cotton carpet, even though technically it could be said to be handloom cloth. In State of Ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er's Third New International Dictionary gives the following meaning of carpet: "A heavy woven or felted fabric usually made of wool........" In the commercial sense, we are inclined to think that a distinction is maintained between carpet and satranji. One who goes to the market asking for a satranji cannot afford to buy a carpet and one who goes for a carpet does not entertain the supply of a satranji in answer to his requisition. Ordinarily, in a developed commercial centre the shops which deal in these commodities would be different. One would be a rich man's place of visit where carpets would be available and the other would be a miscellaneous store which would handle sale of satranjis. We agree with the submission of the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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