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TMI Blog2016 (11) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... cribed under heading 60-01 and 60-02 of the Central Excise Tariff Act has been exempted under the TNGST Act in Entry No.10 of Part A of third schedule to the TNGST Act, 1959? - whether damping cloth is textile falling within Item 4 of Third Schedule of the Tamil Nadu General Sales Tax Act - Held that: - Held that: - reliance placed on the decision of the case of Silver Chem Industries vs. the State of Tamil Nadu [1979 (11) TMI 246 - MADRAS HIGH COURT] where the assessee claimed exemption in relation to a turnover relating to sales of damping hose cloth, on the ground that it is textiles. The Appellate Assistant Commissioner allowed the claim and the Board of Revenue examined the order of the Appellate Assistant Commissioner on suo motu revi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... materials. They are carrying on business at No.10, Ellis Road, Chennai 2. The assessment for the year 2001-02 under the CST Act was scrutinized by the first respondent and a pre-assessment notice dated 7.2.2003 was issued, proposing to tax the sale of damping cloth on the turnover of ₹ 2,45,324 @ 12% based on the impugned clarification issued by the second respondent dated 27.11.2002. Therefore, the petitioner has filed this Writ Petition raising the issue of taxability of sale of damping cloth alone. The petitioner approached the second respondent by filing an application under Section 28-A of the TNGST Act and requested for a clarification and it was clarified that the product Damping cloth is used in offset machine as a vital com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of sale of damping cloth alone was stayed and this interim order was made absolute on 21.10.2003. 4. The issue as to whether damping cloth is textile falling within Item 4 of Third Schedule of the Tamil Nadu General Sales Tax Act came up for consideration before the Hon'ble Division Bench in the case of Silver Chem Industries vs. the State of Tamil Nadu, 45 STC 315 (Mad) . In the said case, the assessee claimed exemption in relation to a turnover relating to sales of damping hose cloth, on the ground that it is textiles. The Appellate Assistant Commissioner allowed the claim and the Board of Revenue examined the order of the Appellate Assistant Commissioner on suo motu revision. The Board held that it was a finished product and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they were commonly understood in ordinary parlance, and not in its primary or technical sense. Another decision which was referred to by the Division Bench was a decision of the Hon'ble Supreme Court in the case of Porritts Spencer (Asia) Ltd. vs. State of Haryana, 1978 (42) STC 433 (SC) wherein the commodity under consideration was dryer felts made out of cotton or woolen 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. It was held that such dryer felts fall within the meaning of the word textiles in item 30 of Schedule B of the Punjab General Sales Tax Act, 1948, and were therefore exempt from tax. It wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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