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TMI Blog2022 (10) TMI 1242X X X X Extracts X X X X X X X X Extracts X X X X ..... words cotton fabrics, man made fabrics and woollen fabrics in Item 5 of IV Schedule, have to be read in the light of Item 59.03 of the I Schedule to Central Act 58 of 1957, which refers to textile fabrics, impregnated cloth covered or laminated. Therefore, the appellants product is covered by Item 59.03 and the appellants were liable to pay and accordingly, paid additional duties of excise under the Central Act 58 of 1957. Having regard to the above, the petitioner is liable for exemption, in view of Section 8 of the State Sales Tax Act. Hence, inclusion of Entry 101 of I Schedule would not make any difference to this decision. Both the Tax Revision Cases are allowed. There shall be no order as to costs. - HONOURABLE SRI JUSTICE C.PRAVEEN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unlop India Limited, Hyderabad [(1988) 8 APSTJ p.97] , holding that Transmission Beltings contain 66.7% cotton and 33.3% rubber and that it is a cotton fabric subjected to process of rubberising and the same is to be classified as Cotton Fabric falling under Entry 5 of IV Schedule read with Section 8 of APGST Act and therefore, exempt from the levy of Sales Tax. The said order was revised by the Deputy Commissioner in respect of turnover relating to 1995-1996 to 15% as per Item 12 of VI Schedule, since Item 101 of First Schedule was shifted as Item 12 of VI Schedule with effect from 01.04.1995. The Deputy Commissioner also relied upon the judgment of the composite High Court of the year 1994 in Good Year India Limited vs. The State of Andhr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15%, which cannot be found fault with. 7. The point that arises for consideration is: Whether the petitioner herein is liable to pay tax as directed by the Tribunal/impugned order? 8. POINT:- Before proceeding further, it is to be noted here that the assessment period, which is subject matter of dispute in the appeal, is for the year 1995-1996. For the year 1995-1996, Entry 101 of I Schedule was shifted and placed at Item 12 of VI Schedule in view of the introduction of VAT Tax and as such, the petitioner is liable to pay tax at 15%. It is also to be noted here that the Tribunal as well as the Deputy Commissioner relied upon the judgment of the Division Bench of the composite High Court in Good Year India s case (3 cited supra) wherein the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as may be prescribed. It is also to be noted here that Entry 5 of IV Schedule of the APGST Act refers to cotton fabrics, man made fabrics and woollen fabrics. Explanation to IV Schedule states that the goods mentioned in items 5, 6 and 7 of this Schedule shall be goods included in the relevant heads and sub-heads of the First Schedule to the Central Act 58 of 1957 but does not include goods where no Additional Duties of Excise are levied under that Schedule. The fact that the petitioner was paying additional excess duty under the Central Act 58 of 1957 is not in dispute and as such, he was exempted from payment of tax under State Sales Tax Act. At that point of time, Item 174 came to be added to I Schedule of the State Sales Tax Act. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the expressions used in Item 5 thereof have the meaning that is assigned to them in the Additional Duties of Excise (Goods of Special Importance) Act, 1957. The words cotton fabrics, man-made fabrics and woollen fabrics in Item 5 must, therefore, be read in the light of Item 59.03 of the First Schedule to the said Additional Duties of Excise (Goods of Special Importance) Act, 1957 which refers to textile fabrics, impregnated cloth -- covered or laminated. The appellants' product, Rexine cloth, is covered by Item 59.03 and the appellants were, at the relevant times, liable to pay and paid additional duties of excise under the Additional Duties of Excise (Goods of Special Importance) Act, 1957. By reason of Section 8 of the State Sales T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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