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TMI Blog2013 (10) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... 20th of March 1997, which has been given retrospective effect and the same has been made effective from 15th of June 1994 clarifies that “woolen yarn” and “woolen carpet yarn” fall within the ambit of exempted category for levy of tax on its sale and purchase, by showing the true intention of the earlier Notification of 13th of June 1994 - Decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture of woolen yarn only within the State of Rajasthan and that exemption cannot be extended vis-à-vis woolen carpet yarn. With these submissions, the learned counsel would urge that the learned Tax Board has committed grave and serious error in interpreting the Notification dated 13th of June 1994 and as such the impugned order is liable to be interfered with. Mr. Dinesh Kumar Godara, learned counsel for the petitioner, has laid great emphasis that woolen yarn and woolen carpet yarn are different products and therefore the learned Tax Board by construing the woolen yarn and woolen carpet yarn as one product, has misread the Notification dated 13th of June 1994 and solely on that ground the impugned order of learned Tax Board is vitiated. The learned counsel for the petitioner Revenue, while assailing the impugned order, has contended that the learned Tax Board has erroneously applied the Notification dated 20th of March 1997 because the impugned tax assessment of the assessee is anterior to the said Notification. The sum and substance of the submission of the learned counsel for the petitioner is that the notification dated 20th of March 1997 is not applicable for al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15th of June 1994. Thus, the sum and substance of the submission of Mr. Singhvi is that Notification dated 20th of March 1997 is nothing but a clarification of earlier Notification dated 13th of June 1994. I have heard the learned counsel for the rival parties, perused the impugned order and scanned the materials on record. The first and foremost question is the power of the State Government for exemption of tax. The said power is clearly envisaged under Section 15 of the Act of 1994. The complete text of Section 15 is reproduced as infra: 15. Exemption of tax. - Notwithstanding anything contained in this Act, where the State Government is of the opinion that it is necessary or expedient in the public interest so to do, it may, by notification in the Official Gazette, exempt fully or partially, whether prospectively or retrospectively from tax the sale or purchase of any goods or class of goods or any person or class of persons, without any condition or with such condition as may be specified in the notification. From a bare perusal of Section 15, it is crystal clear that State Government can issue Notification for exemption of tax for sale or purchase of any goods or class of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether woolen yarn and woolen carpet yarn are different products or both are forming part and parcel of raw wool, suffice it to say that basically there are two type of yarns, which with its own method of fibre preparation and spinning techniques, namely, woolen and worsted yarn. Woolen yarns, usually made from shorter fibres, are thick and full and are used for such items as tweed fabrics and blankets. Worsted yarn is firm-textured, compactly twisted woolen yarn made from long-staple fibres. Worsted is the name of a yarn, the cloth made from this yarn, and a yarn weight category. This type of wool is made of long-staple fibres that have been combed to remove unwanted short fibres and made them lie parallel. The fibres are then tightly twisted and woven tightly as well which inhibits creasing. It is popular for suits and trousers. The woolen and worsted process both require that the wool (and other similar animal fibres, cashmere, camel, etc.) be cleaned before mechanical processing. Woolen and worsted nomenclatures apply only to the textile processing of animal fibres, but it has become common to include fibre blends under these terms. The resultant fabrics will be classified as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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