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TMI Blog1990 (8) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... the First Schedule reading: "100. Bonded fibre fabrics other than those made of coir." 2.. The petitioners are dealers in nylon fishing nets. The Government issued an order invoking section 59A of the Act, on October 21, 1985. It took the view that the nylon nets will come under entry 100. The reasoning in the order reads: "Government have examined the question in detail. It is seen that nylon nets are manufactured out of nylon twines by the process of weaving. Being a woven stuff, these nets are to be correctly classified as 'fabrics'. Twine is a product obtained by twisting two or more nylon fibres and hence it can be classified as bonded fibre." 3.. Fishing has been an adventurous avocation of man with whom a gurgling stream, a p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irts, etc. Nylon yarn is also used for the manufacture of knitwear, stockings and tights, shirts, linen, fabrics, and soft furnishings. The yam, which has twice the tensile strength of aluminium wire of the same size, is used in parachutes and ropes of all sorts, fishing lines and nets, and tyre cords..........." (Emphasis supplied). Mark the sentence indicating the use of nylon for the specific purpose of manufacture of fish nets. There could not be any doubt then that the nylon fibres do directly go into the manufacture of the nylon fish nets. While dealing with fishing nets also, the switch over to nylon fabrics from the traditional cotton and fibre fabrics, has been noted. The following sentences from the same Encyclopaedia would make ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt answered the question in the affirmative. The decision is indicative of the thorough preparation of a case before the High Court with demonstration of the articles and presentation of historical and technical literature side by side with the tools of legal interpretation. It is sufficient to observe that nylon nets were held to come within the entry of artificial silk fabrics. 7.. The Madras decision [1968] 21 STC 367 (Kishinchand Chellaram v. Joint Commercial Tax Officer), did not have to consider a case of conflict between the two entries as in the present case. A rival in the form of "bonded fibre fabrics " was not anywhere in the horizon. It is now a well-settled principle that if an item comes under two entries, one of a general ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... together of fibres by adhesive substance. There is no element of bonding involved in the making of fish net yarns or in the weaving thereof in the fish nets." The averments are not specifically contradicted in the counteraffidavit filed on behalf of the Government. A counter-affidavit in another case was cyclostyled and produced as the counter-affidavit in the present case also. Technically, the counter-affidavit is available. From the practical angle, it is useless as it does not answer the factual and technical aspects, pointedly stressed in the original petitions. The necessity for restructuring the legal defence in taxation administration, though pointed out on numerous occasions, does not appear to have been felt by the Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the context in which it is used and the statutory scheme including the Schedule in which the various entries occur. [See Deputy Commissioner of Sales Tax v. Latheef [1988] 69 STC 29 (Ker)]. 12.. We get a direct clue from the entry itself. As noticeable, coir fabrics are expressly excluded by the latter limb of the entry reading: "Bonded fibre fabrics other than those made of coir." (Emphasis supplied) 13.. Coir fabrics are close to the views of the inhabitants of the State. The green husk taken to brackish backwaters to be retted for a period, and to be beaten into golden fibres by the weakly hands of the working women, is a familiar sight all along the Kerala coast. Coir products, in the form of coir mats, mattings or carpets are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment took the view that it is not nylon yarn coming within entry 42 nor of entry 156 reading: "42. Artificial silk yarn, synthetic polyester fibre, polyester fibre yarn and staple fibre yarn." "156. Plastics and articles made of plastics including plastic pipes." The order states: "Government have examined the question in detail after taking legal opinion in the matter and are of the view that nylon fish net twines do not come within the ambit of either entry 42 or entry 156 of the First Schedule to the Kerala General Sales Tax Act, 1963. Though a scientific analysis of plastics and nylon reveals that both have a petrochemical base, in commercial field nylon belongs to the textile group and is different from plastic goods. It will n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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