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TMI Blog1999 (2) TMI 632X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Commercial Taxes dated August 25, 1989. 2.. Relevant entry 8A of the Fifth Schedule under which exemption is claimed and assessments were finalised earlier is as under: Entry 8A of Schedule V: All varieties of textile namely, cotton, woollen or artificial silk including rayon or nylon whether manufactured in mills, powerlooms or handlooms and hosiery cloth in lengths. 3.. The word textile was interpreted by the apex Court in Delhi Cloth General Mills Co. Ltd. v. State of Rajasthan [1980] 46 STC 256. The dispute was with regard to rayon tyre cord fabric. It was observed that it may be that unlike the cotton, silk, woollen and rayon fabrics used as wearing apparel or furnishing material, the rayon tyre cord fabric is not d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of the apex Court, any fabric which is having warp and weft is a textile. Non-woven fabrics are also textile fabrics made of carded web or fibre web held together by adhesives. Entry 8A of the Fifth Schedule refers to all varieties of textiles. Those varieties may be of cotton, woollen or artificial silk. Non-wovens fabrics have been defined in Manual of Non-wovens by Prof. Dipling and Dr. Radko Krama as under: Non-woven fabrics-Textile fabrics made of a fibrous layer which may be a carded web, a fibre web, a system of random laid or oriented fibres or threads, possibly combined with textile or non-textile materials such as conventional textile fabrics, plastic films, foam layers, metal foils, etc., and forming with them a mechanica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fabric it was not considered as a textile. The interpretations of textile given in Porritts Spencer (Asia) Ltd. [1978] 42 STC 433 (SC) and Delhi Cloth Mills Co. Ltd. [1980] 46 STC 256 (SC) cases are relevant. Even if filtered cloth is not having warp and weft and satisfies the criteria laid down in the judgment referred to above, no tax could be levied. Reassessment order could not have been passed on the basis of the circular issued by the department which are accordingly quashed. If it is found that even in commercial parlance filter cloth could be considered to be textile fabric, then no tax could be levied. If filter cloth is knitted, as alleged then it could be considered to be woven for the purpose of exemption under entry 8A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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