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TMI Blog2015 (11) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and woven". Once the product manufactured by the assessee is held to be fabric, the nature would remain the same and it would continue to remain as textile/fabric. - assessee displayed the samples of the products in question not only before the Tax Board but was available in the file of the learned AO and the Tax Board has come to a definite finding of fact and after verification of the items has come to the conclusion that the items fully withstand the test of pliability and once the factual finding has come on record, the view of the Tax Board, after analysing the material on record, appears to be well justified. - Decided against Revenue. - S. B. Sales Tax Revision Petition No. 842 of 1999 - - - Dated:- 27-2-2015 - RANKA J. K. J. R. B. Mathur with Archit Bohra for the petitioner. Alkesh Sharma for the respondent. JUDGMENT This sales tax revision petition by the petitioner-Revenue is directed against the order of the Rajasthan Tax Board dated February 27, 1991 passed in Appeal No. 122/90/ST/Jaipur. The matter relates to the assessment year 1984-85. 2. Brief facts are that the respondent-assessee is carrying on the business of manufacturing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , inter alia, which is being manufactured by the assessee and is mainly used in cars as a matting and the same is being basically supplied to Maruti Udyog Ltd. and Premier Automobiles Ltd. While the claim of the Revenue is that the items on which exemption has been claimed, cannot be said to be in the nature of man made fabric which is basically provided to car companies. 5. While the Assessing Officer (for short, the AO ) as well as the Deputy Commissioner (Appeals) (for short, the DC (A) ) both held that the assessee is not entitled to exemption under the aforesaid notification and there fore, liable for tax, however, the Tax Board, on a consideration of the matter, accepted the contention raised by the assessee and reversed the finding of the lower authorities. 6. The learned counsel for the petitioner-Revenue contended that the items, on which exemption has been claimed, cannot be classified as textile and even the assessee initially was of the view that no exemption is avail able on it and there was no question of treating the same as a textile item. It was contended that even as per the assessee, up to April 5, 1984, it was liable to be taxed and the tax was according ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yam Stores [1982] 49 STC 117 (Guj) and Commercial Taxes Officer, Pali v. Sakariya Textiles [1986] 61 STC 247 (Raj). 8. I have considered the arguments advanced by counsel for the parties and in my view, the Tax Board has rightly come to the conclusion that it falls within the definition of fabric and is thus exempt. A fabric has been defined to mean All textiles no matter how constructed, how manufactured, or the nature of the material from which made. and the expression textile is described as any product manufactured from fibres through twisting, interlacing, bonding, looping, or any other means in such a manner that the flexibility, strength and other characteristic properties of the individual fibres are not suppressed . Fabric has also been defined as a collective term applied to cloth, no matter how constructed or manufactured and regardless of the kind of fiber from which made. In structure it is planner produced by interlacing yarns, fibres or filaments. Textile fabrics include the following varieties, bonding, felted, knitted, braided and woven . In another dictionary, fabric has been defined to mean a cloth that is woven or knit, braided, netted with any t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the file of the AO and it is too late now to say on the part of the petitioner-Revenue that the matter may be restored for having expert opinion of the expert body to analyse the product manufactured by the assessee. If the AO had doubt, it was at that stage to have sought expert opinion about pliability or not of the material produced by the assessee and it would not be appropriate now to restore the matter back to the AO as the matter pertains to the assessment year 1984-85 and three decades have already passed during the intervening period. This court cannot travel beyond the finding of fact noticed by the Tax Board. 13. The honourable apex court, in the case of Porritts Spencer (Asia) Ltd. v. State of Haryana [1978] 42 STC 433 (SC), was considering an identical case of dryer felts made out of cotton or woollen yarn by the process of weaving according to the warp and woof pattern and commonly used as absorbents of moisture in the process of manufacture in paper manufacturing units, fall within the ordinary and common parlance meaning of the word textiles in item 30 of Schedule B to the Punjab General Sales Tax Act, 1948 and whether it is exempt and the honourable apex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extile fabrics' and textile articles, 'of a kind commonly used in machinery or plant' and clause (4) of that Chapter provides that this expression shall be taken to apply, inter alia, to 'woven textile felts . . . of a kind commonly used in paper-making or other machinery. . .' This reference in a statute which is intended to apply to imports made by the trading community clearly shows that 'dryer felts' which are 'woven textile felts . . . of a kind commonly used in paper-making machinery' are regarded in common parlance, according to the sense of ordinary traders and merchants, textile fabrics. We have, therefore, no doubt that 'dryer felts' are 'textiles' within the meaning of that expression in item 30 of Schedule B. 14. The honourable apex court, in the case of Filterco v. Commissioner of Sales Tax [1986] 61 STC 318 (SC), again adopting the meaning assigned in dictionaries as well as by its generally accepted popular connotation cloth observed that it is woven, knitted or felted material which is pliable and is capable of being wrapped, folded or wound around. It need not necessarily be material suitable for making gar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm cotton fabrics in item 19 of the First Schedule to the Central Excises and Salt Act, 1944, specified referentially in entry 37 of Schedule I to the Act, is an inclusive definition which had brought in also the fabrics impregnated or coated with other chemical compounds. Therefore, interlining collar cuttings and inter-lining double collar cuttings were only cotton fabrics covered by entry 37 of Schedule I to the Act and the sale or purchase of such collar cuttings would be free from all taxes as provided in section 5 of the Act and could not be taxed under the residuary entry 13 of Schedule III to the Act. 17. This court, in the case of Commercial Taxes Officer, Pali v. Sakariya Textiles [1986] 61 STC 247 (Raj) held: Pachrangi dori is a very thin-even thinner than a thin string. It is a bunch of some cotton threads of five colours which are intertwined and twisted. The mere act of twisting, braiding, colouring, dyeing or bunching of cotton yarn into a single cord does not bring into existence a new commercial product. Cotton thread is made from cotton yarn. In order to make cotton thread, few cotton yarns are braided and intertwined but the yarn does not lose its ident ..... X X X X Extracts X X X X X X X X Extracts X X X X
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