9911796707
TMI Blog2006 (3) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... be levied. Accordingly, question No. 1 is answered in favour of the dealer and against the Revenue. In view of our answer to the first question, second question is rendered academic and, therefore, need not be answered. Ordered accordingly. The reference stands disposed of accordingly. Order The order of the court was made by N. KUMAR J. The petitioner, a Government of India undertaking, has challenged in this revision petition the concurrent finding of fact recorded by the three authorities to the effect that the raw silk imported by the petitioner from China is not exempted from payment of surcharge in pursuance of Notification No. 530 FD 190 (CSL. 93(I)] Bangalore, dated March 30, 1994, No. 590 FD 49 [CSL. 95(27)] Bangalore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... noil silk yarn). Thus these goods find three separate entries in the Schedules. The petitioner claimed exemption from payment of surcharge on the basis of the aforesaid notifications on the ground that the silk yarn imported by it from China falls within the phrase mill yarn (all kinds) . All the three authorities, on consideration of the material on record and the relevant entries referred to above, have declined to grant the exemption claimed by the petitioner. Aggrieved by these orders as already stated, the petitioner is before this court. The learned counsel for the petitioner contended that mill yarn (all kinds) within its ambit, includes raw silk which the petitioner has imported from China. As it is only after the milling proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... surcharge, they have extended the benefit only to mill yarn (all kinds). The raw silk and silk yarn which find a place in entry 22 of Part S of the Second Schedule to the Act is not included for such treatment. The Legislature has specifically treated these three goods differently. They are competent to take into consideration this distinction and treat different commercial commodities differently for the purpose of levy of tax. Even though the raw silk, silk yarn and mill yarn may fall under the heading "yarn", they undoubtedly constitute separate groups which are capable of distinct classification on intelligible basis. As soon as separate commercial commodities emerge or come into existence they become separate taxable goods or entities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kinds), referred to in the aforesaid notifications? It is not in dispute that entry 22 of Part S of the Second Schedule to the Act refers to raw silk and silk yarn imported from outside the country and is liable to tax at 4 per cent. Entry 8 of Part M of the Second Schedule to the Act refers to mill yarn (all kinds) excluding the yarns mentioned therein and the tax payable is only at 2 per cent during the relevant period. However, as per entry 38-A of the Fifth Schedule for raw silk including raw silk yarn and silk yarn (twisted or thrown silk yarn, spun silk yarn and noil silk yarn) other than those imported from outside the country, no tax is levied. In other words, the Legislature by making these three different entries, have treated t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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