9911796707
TMI Blog2013 (5) TMI 397X X X X Extracts X X X X X X X X Extracts X X X X ..... d by specific entries would be subject to rate of tax at 8%. Held that - It may be noticed that various tariff entries referred to in Item No.11(i) of the Third Schedule does not take in the above HSN Code, which means that even under the Central Excise Tariff bed sheet is treated as a separate item different from cloth from which it is made. It is worth noticing that when exemption is granted to handloom cloth along with it even readymade garments made of handloom cloth are covered by the said exemption entry i.e. Item 27 of the Third Schedule. So much so, we are of the view that Entry 10 of the Third Schedule is not intended to cover any products made from cloth such as bed sheets, bed covers, towels, napkins etc. - In our view the lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the finding of the Assessing Officer confirmed by the learned Single Judge following the decision of the Supreme Court in Delhi Cloth General Mills Co. Ltd. v. State of Rajasthan, reported in (1980) 46 STC 256, is that bed sheet is a product made of cloth and so much so when there is no specific exemption for bed sheets the item falls outside the general category of powerloom cloth, covered by Item 10 of the Third Schedule above stated. In support of his contention learned counsel for the appellant has submitted that the specific entry providing for rate of sales tax on bed sheets was brought into the First schedule to the KGST Act on 31/12/1999. Relying on this, the contention raised is that until the introduction of the specific ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o, the question whether exemption is available to a commodity has to be found out from the exemption entry itself and the scope of it will have to be considered with reference to other entries in the same schedule. For easy reference we extract hereunder Entry 10 of the Third Schedule along with certain other entries of the same Schedule, which will throw light on the scope and meaning of the exemption entry relied on by the appellant. Entry Goods exempted from tax 6. Bed covers, teapoy covers, towels, napkins made of handloom cloths. --- --- --- --- 10. Cloth woven on powerloom 11(i) Cotton fabrics covered under heading Nos.52.05, 52.06, 52.07, 52.08, 52.09, 52.10, 52.11, 52.12, 58.01, 58.02, 58.03, 58.04, 58.05, 59.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to bed sheet. We cannot take the view that the legislature is not aware of the subtle distinction between cloth or bed sheet or bed cover made of such cloth. However, when the legislature intends to treat bed sheet, bed cover, towels etc. as separate products though made of cloth, the Court has no authority to take the position that both cloth and products like bed sheet are one and the same. It may be noticed from Item 6 of the Third Schedule itself that the exemption to bed cover, teapoi cover, towels etc. is limited to products made from handloom. The legislative intention is very clear that if bed cover, teapoi cover etc. are not made of handloom cloth, the same would not fall within the Third Schedule. 7. Even though learned c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions are neither applicable on facts nor could be accepted as laying down the correct law. 9. Learned counsel for the appellant has brought to our notice that the Sales Tax Appellate Tribunal has taken a contrary view in the case of another assessee in declaring exemption on bed sheets made of powerloom cloth, and the Department has not challenged the same. Learned Government Pleader rightly pointed out that the order of the Tribunal is not binding on the State. We agree with the contention raised by the learned Government Pleader because omission to file revision in a case whether based on wrong legal advice or on account of small amount of tax involved in such cases does not bar the Government in taking correct stand in other cases. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rayed for waiver of interest, learned Government Pleader opposed stating that atleast after the judgment of the learned Single Judge, the appellant had no justification to withhold payment of tax. We feel, since the Tribunal decided the issue in favour of the assessee in another case, the appellant can be granted waiver until the date of the judgment of the learned Single Judge against the appellant. We therefore, waive interest until the date of the judgment of the learned Single Judge provided the arrears along with interest payable from 27/07/2007 till date of payment is paid within two months from today. However, if payment is not made as above, the partial waiver of interest granted by us will stand automatically vacated and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
