9911796707
TMI Blog1980 (9) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the Member, Additional Sales Tax Tribunal, was legally correct in holding that sarees when fitted with chumki and embroidery works no more continue to be mill-made fabrics and as such are taxable as 'embroidery' mentioned in serial 43 of the taxable list?" 2.. The assessee is a dealer in mill-made and handloom cloths. The relevant periods are 1973-74 and 1974-75. The assessee commenced bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bjected to the process of embroidery after its manufacture as a cotton fabric has been completed, it can no longer be called a cotton fabric as defined by entry 19 of Schedule I to the Central Excises and Salt Act, 1944, and it becomes an embroidered saree within the meaning of entry 3 of Schedule E. The process of embroidery is not a process incidental or ancillary to its manufacture as defined i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese authorities would not be of any assistance. There is no dispute that millmade cloths are exempt from the levy of sales tax. There is equally no dispute that chumki is an embroidery article. In case the mill-made saree is subjected to chumki work, the saree while continuing to be a saree for all practical purposes might cease to be a plain mill-made cloth and thereby lose the benefit of exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent of embroidery work on the mill-made sarees. It has, therefore, become difficult for us to answer the question referred to us one way or the other. We would, however, indicate that there is no doubt in our mind that if the saree continues to be essentially a mill-made one with little embroidery work on it, it would not pass in the market as a work of embroidery or as a chumki saree, but wou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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