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TMI Blog2004 (11) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... e contention of the applicant that the products in question were covered by entry No. 7 in Part I of Schedule II to the M.P. General Sales Tax Act, 1958 and accordingly the sales thereof were exigible to tax at the rate of 3 per cent only ? 2.. Whether, on the facts and in the circumstances of the case and on a proper construction of the relevant entries in Schedule II to the M.P. General Sales Tax Act, 1958, the Board of Revenue was justified in law in holding that the products of the applicant were covered by entry No. 5 in Part III of Schedule II and the sales thereof were exigible to tax at the rate of 10 per cent ? 2.. In order to appreciate the issue involved in the reference, relevant facts which are part of the statement of case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l made the reference to this Court on the two questions referred supra for answer on merits. This is how this reference has come to this Court. 3.. Heard Shri G.M. Chaphekar, learned Senior Advocate with Ku. Vandana Kasrekar, learned counsel for the applicant and Shri A.S. Agrawal, learned Government Advocate for the respondent. 4.. Submission of the learned counsel for the applicant was the same which they urged before the lower taxing authorities including before the Tribunal in support of their contention. In substance, according to him, the items in question, i.e., leather jacket and leather coat have to be treated as ready-made garments as specified in entry No. 7 in Schedule II, Part I. In reply, learned counsel for the State su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there are number of items available in market which are made of leather, such as belts, purses, shoes, bags, suitcases and like that many more and hence the Legislature thought it proper to use the expression "all kinds of leather goods" by making it as generalised one rather than to go on specifying each and every item. In this view, if a particular item is found to have been made of leather as its raw material then it is or can be identified as leather goods. 8.. It is not in dispute that the two items or we may call two goods which are subject-matter of controversy are made of only leather. In other words, these two items were manufactured by the applicant only with the aid/use of leather as its basic raw material. In these circumstanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of entry No. 5 along with sports goods. In other words, in order to take out these goods from the clutches of entry No. 5, the Legislature had the liberty to put them in exclusion clause along with sports goods. In fact, after the MPGST Act was repealed and replaced by the Madhya Pradesh Commercial Tax Act, 1994, the Legislature amended the entry relating to leather goods falling in Part III of Schedule II (entry No. 8) and added "footwears" in the exclusion clause along with sports goods, thereby taking out two kinds of specified goods from the entry. This could have been done because admittedly these goods are made of leather. Since this was not done, the entry No. 5 will continue to govern the field so far as its taxability in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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