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TMI Blog2022 (4) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... rised as handicrafts, if the following tests are satisfied and thereafter, pass orders accordingly:- (1)It must be predominantly made by hand. It does not matter if some machinery is also used in the process; and (2) It must be graced with visual appeal in the nature of ornamentation or inlay work or some similar work lending it an element of artistic improvement. Such ornamentation must be of a substantial nature and not a mere pretence . In the present case, the first respondent / Tribunal without examining the characteristic of the articles made by the petitioner, has formed an opinion that the marble stone items would not fall under the category of handicrafts, but come under Entry 13 of Part E of the First Schedule, treating the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 4,81,60,060.76 and ₹ 3,89,12,299.23 respectively. After verification of the records, the second respondent proposed to levy tax on the sales turnover of handicrafts of ₹ 5,28,818.42 at 16% on the premise that it falls under Entry 13 of Part E of the First Schedule as stone articles. The said proposal was objected by the petitioner, stating that the stone articles are purely handicrafts as they are made after arthritic carving, which includes inlay works moulding enquisite and hence, it is taxable at 8% as handicrafts under Entry 22-A of Part C of First Schedule. Being dissatisfied with the explanation so submitted by the petitioner, the second respondent by proceedings in TNGST/064005/ 1997-98 dated 14.03.2000, determine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel, the order of the first respondent is arbitrary, illegal and unjustified. The learned counsel further drew the attention of this court to the proceedings of the commercial tax department for clarification and advance ruling vide ACAAR No.109/2015-16 (Acts Cell-II/38865/2015) dated 20.01.2016, in respect of the assessee viz., Tvl.Papanasam Kudisai Trust, Tirunelveli, and submitted that the handmade stone items fall under the category of 'handicrafts'. Therefore, the learned counsel sought to allow this writ petition by quashing the order of the first respondent. 4.The learned Additional Government Pleader appearing for the respondents submitted that the first respondent after analysing the materials placed before it, has pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the first appellate authority and restored the order of the assessing officer, by the order impugned in this writ petition. 8.Now, the question arises for consideration herein is, as to whether the product dealing by the petitioner, viz., marble stone articles, can be treated as handicrafts . 9.At this juncture, it is pertinent to refer to the decision of the Hon'ble Supreme Court in the Collector of Central Excise, New Delhi v. Louis Shoppe and another [1996 STC Vol.102, at page 129 ], wherein, it was held that the authorities shall examine the matter, as to whether wooden furniture by itself can be treated as handicrafts, which may be characterised as handicrafts, if the following tests are satisfied and thereafter, pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or implements operated directly by craftsmen, mainly by hand or by foot. Additional identifying features of handicrafts are (a)traditional or artistic features deriving from geographical regions or country of production; (b) production by craftsmen, working generally on cottage industry basis. 6.Notwithstanding the above general definition, if a product satisfying the above definition is specifically enumerated under any entry of the Schedules of TNVAT Act as taxable goods, that product has to be treated as taxable goods only, applying the theory that if there is any conflict between two entries of Schedules, specific entry would prevail over the general entry. 7.Having considered the above definition and legal interpretat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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