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TMI Blog1987 (11) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... at on account of a notification dated January 31, 1985, these fabrics had been excluded from the category of textiles. 2. The dispute in the present petition relates to assessment years 1984-85 and 1985-86. When the petitioners came to this Court, an interim order was passed on August 17, 1985, staying the assessment proceedings for these years. The interim order continues to operate. 3. The case of the petitioners is that the fabrics which they are making are H. D. P. E. (Unlaminated) fabrics to be used in making bags which were meant for packing fertilisers. This is an item which, according to them, was initially exempt from payment of sales tax under Section 4 of the U. P. Sales Tax Act. An order to this effect was made by the Sales Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent : Provided that the State Government may, from time to time, by notification modify the rate or point of tax on the turnover in respect of any such goods, with effect from such date as may be notified in that behalf, so, however, that the rate does not exceed eight per cent." 5. Section 14 of the Central Sales Tax Act declares various goods as goods of special importance in inter-State trade or commerce. Clause (vii) of this section provides as follows : "(vii) Rayon or artificial silk fabrics as defined in Item No. 72 of the First Schedule to the Central Excise and Salt Act, 1944 (1 of 1944)." 6. - Section 15 of the same Act then says that every sales tax law of a State shall, in so far as it imposes or autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fabrics are found to be amongst the deelared goods, it is obvious that the turnover thereof would be liable to be considered for levy of tax under clause (a) of Section 3-A (1) of the U. P. Sales Tax Act and not clause (e) thereof. To this extent, if the submission of the learned counsel for the petitioners is accepted by the Sales Tax Officer in the notices dated July 24, 1985, will have to be characterised as manifestly untenable in law. 10. Learned Standing Counsel straneously contended that the question whether the H. D, P. E. Fabric fell within the category of declared goods within the meaning of Section 11 of the Central Sales Tax Act was dependent upon investigation into facts which should more appropriately be left to be done by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it had entertained a reference. We are unable to agree that the question is one of fact. It is a question which concerns the construction of Item 22 of the Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957. If the Rayon tyre cord fabric manufactured by the appellant is covered by that item it is exempt from sales tax and there is no jurisdiction in the sales tax authorities to assess the appellant on the turnover. The question is one of substantial importance, and having regard to the circumstances there is good reason for entertaining the appeals and deciding them on the merits." 11. It is implicit in these observations that where the question i* likely to arise repeatedly in myriad assessment procee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ics under Central Excise Tariff Item No. 22. Similarly, a later advice contained in Pune Collectorate Trade Notice No. 132/84 dated August 6, 1984, says that H. D. P. E. woven fabrics are classifiable as "Man-made fabrics" under Item No. 22 of Central Excise Tariff. Reference to such departmental Interpretation for deciding whether a particular article falls within a specified category or not, is an accepted mode of examining such questions. The Supreme Court did so in Delhi Cloth and General Mills case (supra). 13. If, as is clear from the above discussion, H. D. P. E. woven fabrics fall under Item No. 22, they would have to be treated as one of the declared goods within the meaning of Section 14 (vii) of the Central Sales Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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