9911796707
TMI Blog2009 (1) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... ner 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 short C.T.O, PS) on May 26, 1997. In the assessment order, the CTO, PS levied tax on sales of neck-tie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 garments and neck-tie . As per Concise Oxford Dictionary readymade garments, i.e., clothes means made in standard shapes and siz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovision 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 under section 5(1)(b) of the Act, 1941 which is as follows: 5(1)(b) three percentum of such part of his taxable turnover as represents sales of gold or silver orn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of inclusion, cannot be accepted as legal interpretation of the statute. The same issue whether neck-tie is a readymade garment or not came up before the Full Bench of the honourable Madhya Pradesh High Court in the case of Assistant Sales Tax Officer v. Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chaser, 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 with its appropriate impact, one will find that the important test applicable would be the availability of the article for immediate use as it is. At the same time the conventional use of it cannot also be ignored. The way in which such an article is being used has to be given appropriate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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, we set aside the assessment order, appellate order and revisional order passed by the C.T.O., Park Street Charge, ACCT, South Circle and learned member of the Board, respectively, with a direction to the assessing officer to recalculate/reassess the petitioner in the light of this judgme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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