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TMI Blog1980 (2) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... as sale of woollen goods at 6 per cent ? 2. The assessee, Cawnpore Woollen Mills Branch, Kanpur, one of the branches of British India Corporation, manufactures woollen goods and yarn, etc., woollen cardigans and pullovers. It also maintains a canteen as a measure of labour welfare activity under Section 46 of the Factories Act, 1948, read with Rule 68 of the U.P. Factories Rules. It has been held by the Additional Judge (Revisions) that canteen sales are sales within the meaning of the Sales Tax Act and the assessee was a dealer liable to pay tax. Reliance for this proposition was placed on Swadeshi Cotton Mills Co. Ltd. v. Sales Tax Officer [1964] 15 STC 505. In respect of cardigans and sweaters it was held that they were taxable at 6 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed counsel sweaters and cardigans are manufactured by knitting and as knitted goods are considered to be hosiery they should be held to be taxable as hosiery. 5. In Webster's Third New International Dictionary "hosiery" has been defined: Hose which in its turn has been defined as cloth leg covering that reaches down to the ankle and sometimes covers the foot: stockings, socks. In Britain it is applied to additional knitwear. 6. "Mercury Dictionary of Textile Terms" published by Textiles Mercury Limited, Manchester, describe hosiery thus: (Hosiery Nonneterrie, French).--Hose originally denoted a pair of close fitting breaches reaching to the knee. The application of the term to garments covering the legs below the knee was later when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llen hosiery is one paisa per rupee, for the woollen goods, it is one anna per rupee. In the Hindi notification, entry No. 17 reads: (sabhi prakar ke moje va baniyain addi). 9. The question requiring consideration is whether woollen pullovers and woollen cardigans would fall in the category of woollen goods or in the category of hosiery. The word "hosiery" has been given the following meaning in Shorter Oxford English Dictionary : Hose collectively, extended to the whole class of goods in which a hosier deals, the business of hosier and factory where hose is woven. The meaning given to the word "hosiery" in the same dictionary is, one who makes or deals in hose (stocking and socks) and underclothing generally. It is therefore indicate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asthan High Court or it should be confined to underclothing, socks and stocking only as" held by this Court in Ram Lal's case 1969 Law Diary 41. This necessitates an examination of notifications issued from time to time as in such circumstances the legislature's intent discerned from these notifications can be the best guide. 12. The first Notification No. 117 was issued on 8th June, 1948, under Section 3-A and entries 3 and 4 read as under : 3. Woollen goods and knitting wool. 4. Hosiery of all kinds. In Hindi the entry read as under : 3. Uooni mal aur hath se bunney ka uoon. 4. Sab prakar ke hosiery. 13. In 1956 the Hindi notification of hosiery in ST-905 dated 1st April, 1956, read: Sabhi prakar ke mose, baniyain, hosiery ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n No. ST-1365 dated 1st April, 1960. Woollen goods excluding carpets and hosiery, but including knitting wool and readymade garments made out of woollen cloth. The same entry continued in Notification No. 332 dated 15th November, 1971, except for change of rate. Another Notification No. 334 was issued on same day and entry in respect of hosiery read as under: Hosiery of all kinds other than that made of pure cotton. 15. It shall be seen that from 1948 to 1961 woollen hosiery was taxable as "hosiery of all kinds", but from 1961, it became taxable as woollen goods for a brief period as from 1962 it was again excluded except pure woollen hosiery and that also was taken out in 1969 and all woollen hosiery became taxable once again as ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd "hosiery" was also mentioned. In any case in subsequent notification the words "..baniyain" and "mose" having been dropped and the word "hosiery" having been used as was done in 1948, it was clear indication of extending the entry and granting benefit of lower rate of tax to those goods which could be considered to be hosiery or knitted garments. In this light, the controversy becomes quite simple as the word "hosiery" used in various notifications for purposes of taxability has to be understood in the wider sense in which it applies to all knitted articles instead of confining it to underclothing. On this view, sweaters, cardigans and pullovers which are manufactured by knitting are covered in the entry "hosiery". Even in Verma Hosiery ..... X X X X Extracts X X X X X X X X Extracts X X X X
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