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TMI Blog1987 (3) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Central Sales Tax Act, 1956 in respect of carpets. Under clause (x) of section 14 of the Central Sales Tax Act, 1956, woollen fabrics as defined in item No. 21 of the First Schedule to the Central Excises and Salt Act, 1944 are "goods of special importance" in inter-State trade or commerce. Under section 15 of the Central Sales Tax Act, 1956 every sales tax law of a State imposing or authorising the imposition of a tax on the sale or purchase of declared goods is subject to the restrictions and conditions mentioned in clauses (a) to (d) of the said section 15 of the Act. Under clause (a) of section 15, tax payable under the State sales tax law in respect of sale or purchase of goods of special importance inside the State shall not e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause (28) of rule 3 of the Bengal Sales Tax Rules, 1941 provided for deduction from a dealer's gross turnover of sales of woollen fabrics. Prior to the substitution of the said rule the sales tax authorities treated woollen carpets as woollen fabrics and used to exempt payment of sales tax upon sales and purchases of woollen fabrics. At the outset, it is necessary to clarify that the State Government had competence to issue the impugned Notification No. 1823-F.T. dated 1st April, 1975 for substitution of the said clause (28) in rule 3 of the Bengal Sales Tax Rules, 1941. It is open to the State Government to amend, alter or vary the different clauses of rule 3 which contain the list of commodities whose sales and purchases are to be ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the range of the very wide sweep of the expression "fabrics". Products made by different varieties or processes of binding or putting together have been considered as fabrics (vide pronouncement of the Supreme Court in the cases of Porritts Spencer (Asia) Ltd. v. State of Haryana reported in [1978] 42 STC 433, Delhi Cloth General Mills Co. Ltd. v. State of Rajasthan reported in [1980] 46 STC 256 and Commissioner, Sales Tax, U.P. Lucknow v. Agra Belting Works reported in [1985] 59 STC 118 (All.), etc.). The learned Advocate for the respondents also relied upon the meaning of the word "carpet" given in different dictionaries to establish the common and accepted meaning of the said expression that it was a floor covering fabric having a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ises and Salt Act, 1944. Similar opinion was conveyed by the letter dated 16th December, 1971 by the Secretary, Government of India, Finance Ministry, Revenue and Insurance Department. Before us Mr. Dutt, learned Advocate appearing on behalf of the appellants, submitted that carpets with jute backing cannot be considered as woollen fabrics and that only those carpets which are made by weaving woollen threads ought to be considered as woollen fabrics. Decision in these cases ought to be confined to the broad question whether carpets manufactured wholly of wool or which contain 40 per cent or more by weight of wool are woollen fabrics within the meaning of item No. 21 of the First Schedule to the Central Excises and Salt Act read with secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Commercial Tax Officer has to also decide whether the manufactured produce were carpets or some other produce not covered by item No. 21 of the First Schedule to the said Act. If, on the other hand, a dealer substantiates his claim that he sold or purchased carpets manufactured wholly of wool or containing 40 per cent or more by weight of wool, then the Commercial Tax Officer will be bound to uphold its claim that the same were woollen fabrics and, therefore, the dealer was liable to pay sales tax for them at a rate not exceeding the maximum prescribed by section 15(a) of the Central Sales Tax Act, 1956. For the foregoing reasons, we dismiss these appeals and uphold the judgment and order of the trial court subject to the modificati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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