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TMI Blog2011 (5) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... dealer carrying on business of H. D. P. E. filter cloth. The Tribunal has exempted H. D. P. E. cloth manufactured by the opposite-party/dealer from tax in view of Notification No. ST-II-7038/X-7 (23)/83-U. P. Act XV-48 Order - 85, dated January 31, 1985 read with Notification No. ST-II-3714/X-6 (1)-85-U. P. Act 15-48-Order-85, dated June 5, 1985, wherein certain items were exempted from payment of tax under the U. P. Sales Tax Act, 1948. The relevant extract of Notification No. ST-2-7038/X-7 (23)/83-U. P. Act/XV-48-Order-85, dated January 31, 1985, is reproduced hereinbelow:- "(Published in U. P. Gazette, Extraordinary, dated January 31, 1985) In exercise of the powers under clause (a) of section 4 of the Uttar Pradesh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, scarfs, napkins and dusters, made out of fabrics of any of the varieties mentioned in sub-clauses (a), (b), (c) or (d) above; (ii) cotton velvets and velveteen but excluding embroidered velvets; (iii) hosiery cloth in lengths; (iv) book binding cotton fabrics and leather cloth and inferior or imitation leather cloth ordinarily used in book binding; (v) bandages; (vi) rubberised or synthetic water-proof fabrics, whether single textured or double textured. .... .... 58 ...." Subsequently, another notification to the same effect was issued on June 5, 1985 with some changes. However, it makes no distinction with regard to the taxability or exemption of H. D. P. E. clot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to the process of lamination become water-proof. That being so, the article in question squarely falls within clause (vi) of the Annexure to the above notification dated June 5,1 985. Clause (vi) specifically exempts synthetic water-proof fabrics from levy of sales tax. The learned standing counsel, however, submitted that mere lamination would not take the H. D. P. E. fabrics being manufactured by the petitioner from out of the purview of the exception specifically made under entry 53, i.e., being H. D. P. E. fabrics it cannot claim exemption from sales tax in view of entry 53 which excepts various items of textiles from the benefit of exemption granted under the notification dated June 5, 1985. The learned standing counsel vehemently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " In short, the Division Bench held that a water proof H. D. P. E. fabric which is a laminated cloth is entitled to exemption of tax in view of the aforesaid notification. A learned single judge in the case of Commissioner of Trade Tax v. Rajesh Kumar Vikas Kumar Pandey, Gorakhpur [1999] UPTC 595 "held H. D. P. E. fabrics have been excluded from the exemption, but the exclusion has been diluted by specifying certain goods in the Annexure in which item No. (vi) is in respect of rubberised or synthetic water-proof fabrics whether single-textured or double textured. The exemption is, thus, in respect of water proof fabrics. No exemption is available to H. D. P. E. fabrics unless it is a water proof fabric." Necessary corollary of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ple of "stare decisis" obliges the court dealing with a matter to be guided by the accumulated wisdom of the Judges rendered on the subject in past and to prevent frequent overruling of earlier decisions, particularly without disclosing reasons for deviation. A ratio of law which had stood for a length of time need not be disturbed unless there are compelling reasons. The ratio laid down in Gaurav Traders, Gorakhpur [2009] 26 VST 23 (All) ; [2007] UPTC 914 cannot be recognised as a good and a binding precedent. First for the reason it though mentioned the Division Bench decision in Mahalaxmi Polyplast Private Limited, Muzaffarnagar [1992] 86 STC 523 (All) ; [1990] UPTC 956 but failed to discuss, analyse and to give reasons for deviating fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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