9911796707
TMI Blog2009 (1) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the West Bengal Commercial Taxes Appellate and Revisional Board. The petitioner has also prayed for interpretation of the ambit, scope and effect and purport of the expression "readymade garments" used in clause (b) and/or in sub-clause (v) of clause (bbb) of sub-section (1) of section 5 and/or the provisions of section 10A of the Bengal Finance (Sales Tax) Act, 1941. The petitioner, M/s. Janton, is a partnership firm duly registered with the registrar of firms and also a registered dealer under the State and Central Sales Tax Acts. The petitioner is mainly a manufacturer of "neck-tie". The assessment for four quarters ending on March 31, 1995 was completed by the Commercial Tax Officer, Park Street Charge (in sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tie and with effect from April 1, 1999 the items, neck-tie, bow and collar, were brought within the fold of the entry No. 12 of Part A of Schedule VIII-A of the Act, 1994. It is alleged that though the assessing officer levied tax at three per cent on sales of neck-tie, the appellate authority on suo motu revision levied tax on the sales of neck-tie at 10 per cent treating the item as general goods which are not correct as per true meaning of the words "readymade garments". It is further alleged that the learned member of the Board also failed to understand the true meaning of the words "readymade garment" and confirmed the appellate order. Mr. J.A. Khan has referred to dictionary meaning of the words "readymade ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eneral goods taxable at 10 per cent. It is further argued that prior to April 1, 1999, neck-tie was not covered by the words "readymade garments". It was an inclusive provision to include necktie within the category of readymade garment when the amendment took place with effect from April 1, 1999. The only issue in this case is to decide whether neck-tie is a readymade garment or not. The rate of tax prior to April 11, 1994 on sales of readymade garment was: 5(1) (bbb): Two per centum of such part of his taxable turnout represents sales of-- . . . (v) readymade garments, other than hosiery goods and garments made of khaddar or khadi. With effect from April 11, 1994, the rate of tax on sales of readymade garments was provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k-tie" was specifically mentioned in Schedule VIII against serial No. 2(ii). But the subsequent inclusion of the word "neck-tie" in Schedule VIIIA under the West Bengal Sales Tax Act, 1994 and in Schedule C under the West Bengal VAT Act, 2003 means that "neck-tie" is always there within the definition of "readymade garments". As such, it cannot be said that under the Bengal Finance (Sales Tax) Act, 1941 the item "neck-tie" was not covered by the readymade garments as mentioned under section 5(1)(bbb)(v) or 5(1)(b) of the said Act. The argument of the learned State Representative that the item "neck-tie" is included either under the West Bengal Sales Tax Act or West Bengal VAT Act by way ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed edition, based on the first edition of the Random House Dictionary of English language published in 1996 by Gramercy Books, a division of Random House Value Publishing, Inc., New Jersey--indicates the meaning of word 'readymade' as (i) made in advance for sale to any purchaser, rather than to order; a readymade coat; (ii) made for immediate use; (iii) unoriginal, conventional; (iv) a manufactured object exhibited as being aesthetically satisfying; (v) something that is readymade, especially a garment." Thereafter, the honourable court also considered the common parlance test. The observations of the honourable court are as follows: "12. If the meaning given by these three foremost dictionaries is understood together w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h are understood by the word 'garment'. It is readymade to suit need of any customer who desires to use it immediately after purchasing it without further processing like measuring, stitching or pressing." On the basis of the above observations the honourable court came to the conclusion that neck-tie is a readymade garment. We agree with the decision of the Full Bench of the honourable Madhya Pradesh High Court and hold that neck-tie is a readymade garment. The rate of tax levied on the sales of readymade garments from April 1, 1994 to April 10, 1994 is two per cent and from April 11, 1994 to March 31, 1995 is three per cent. Surcharge and additional surcharge will be levied, if applicable to the petitioner-firm. Accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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