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TMI Blog2013 (10) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... not make the goods in question as falling under the First Schedule for taxation - Department had already accepted the case of the assessee during 2007 for the assessment years 1992-93 and 1995-96. The Revenue does not dispute the fact that what was sold herein is the same goods, for which, the assessee was entitled the benefit of exemption for the assessment years 1992-93 and 1995-96 - Stitching on edges would not make any difference to deny exemption under the said Entry – Decided in favor of Assessee. - Tax Case (Revision) No. 31 of 2009 - - - Dated:- 23-8-2013 - Chitra Venkataraman And K. B. K. Vasuki,JJ. For the Petitioner : Mr. P. Rajkumar For the Respondent : Mr. A. R. Jayapratap, G. A (Taxes) ORDER (Order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s rejected by the Assessing Officer on the ground that terry towel cloths were folded over and stitched on both sides and it was only a stitched article liable to tax. Hence, assessment was sought to be made, as the goods fall under Entry 23 of Part B of the First Schedule I to the TNGST Act till 16.7.1996 and thereafter under Entry 70 of Part B of the First Schedule to the TNGST Act. 3.Aggrieved by this, the assessee went on appeal before the Appellate Assistant Commissioner (Commercial Taxes). The First Appellate Authority referred to various decisions and arrived at the conclusion that tarpaulin is cotton fabric, exempted from sales tax levy. The First Appellate Authority pointed out that cutting the knitted fabric into different size ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dealt with by the dealer i.e., Terry towel would qualify for exemption or not, came up for consideration for the assessment years 1992-93 and 1995-96 and accepted the case of the assessee that terry towel was an exempted item. On remand by the Tribunal, the Assessing Officer passed the revised assessment order on 16.7.2007, wherein, the Assessing Officer accepted the case of the assessee that terry towel was not liable to tax and accordingly held that turnover of terry towel for the year 1995-96 was liable for exemption. Apart from that, the department had also accepted the case of the assessee for the earlier years as referred to above. 6.Learned counsel for the assessee also relied on the decision of the Hon'ble Supreme Court repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. 8.The relevant Entries in the Schedule read as under. Entry 2(iii) of Part A of the Third Schedule to the TNGST Act, reads as follows: Terry towelling and similar woven terry fabrics (produced or manufactured in India) as described in column (3), against the heading 58.02 in column (1), of the First Schedule to the said Act. Chapter 58.02 to the Central Excise Tariff Act 1985 is extracted hereunder: 58.02. Terry towelling and similar woven terry fabrics, other than narrow fabrics of Heading No.58.06; tufted textile fabrics other than products of Heading No.57.03. - Terry towelling and similar woven terry fabrics of cotton: Entry 23 of Part B of the First Schedule till 16.7.1996 and Entry 70 of Part B of the First ..... X X X X Extracts X X X X X X X X Extracts X X X X
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