2006 (8) TMI 534

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..... entry 129 of the First Schedule to the Kerala General Sales Tax Act, 1963 up to April 1, 1992 and thereafter under entry 89 of the First Schedule or whether the item is entitled to exemption under entry 7 of the Third Schedule to the KGST Act which entry was later renumbered as entry 11 of the very same Third Schedule. Different Benches of the Sales Tax Appellate Tribunal decided the appeals diffe .....

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..... on on application for sales tax exemption by a section of manufacturers and dealers of nylon fish net including Matsya Fed, an organisation under Government control. When the parties sought for exemption, Government felt that no exemption was required as the item falls under the Third Schedule to the Act. In spite of Government orders, the assessing officers levied tax because this court held in a .....

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..... l Excise Tariff Act, we find nylon yarn is treated as man-made filament yarn. Therefore nylon net fabrics made of nylon yarn are man-made fabrics covered by entry 54.08 of the Central Excise Tariff Act. There is some controversy as to whether the item is nylon net or nylon net fabric. We do not think there is any need to consider this issue because what is granted exemption under the Third Schedul .....

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..... exemption in favour of the assessees. Moreover it has to be noted that Government's clarification above referred is issued on application for exemption and going by the contents of it, we are of the view that but for the clarification issued above, the Government would have issued exemption notification under section 10(1) of the Act. It is also to be noted from the clarification that the Gove .....

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..... riving their valid right to collect tax, it is wholly unfair and inequitable to assess and sustain the demand based on some fine principle of law laid down by this court. Therefore we hold that nylon fishing net or net of fabric sold by the assessees is entitled to exemption under entry 7 which was later renumbered as entry 11 of the Third Schedule to the Act. Tribunals' orders in favour of th .....

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