9911796707
TMI Blog1984 (2) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... s quarterly returns for the assessment year 1966-67, it indicated inter-State sales and claimed that no Central Sales Tax was leviable, since the sales had been made to Nagaland and were thus exempt from levy of tax. The plea of the assessee was rejected. Two questions had arisen : (i) whether "hosiery goods" were "declared goods" under the Central Sales Tax Act and, if so, (ii) what was the rate of tax if those sales had been made to unregistered dealers. The matter was agitated up to the Sales Tax Tribunal but the assessee could get no relief. Finally, he claimed reference in consequence of which the sole question, above-noted, was referred for opinion. 3. At the outset it must be mentioned that "hosiery goods" as such are not "declared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... term according to the meaning ascribed to it in common parlance". The same principle was followed in State of West Bengal v. Washi Ahmed (1977) 39 STC 378 (S.C.), while considering whether green ginger fell within the ambit of "vegetables" or not. The principle was reiterated in Union of India v. Gujarat Woollen Felt Mills - 1977 E.L.T. (J 24) (S.C.) = AIR 1977 S.C. 1548, that resort should be had not to the scientific or the technical meaning of terms in such like statutes but to their popular meaning, or the meaning attached to them by those dealing in them, that is to say, to their commercial sense. And since the term "hosiery goods" has not been used anywhere in the Central Sales Tax Act as such, the meaning of the term as commercially ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oven felts from woollen fibres meant for the purpose of filtration in heavy industries. Those felts were manufactured by the method of machine-pressing raw wool-waste in the thickness varying from 1 mm. to 50 mm. depending on the specification of the customers. The High Court of Gujarat termed those felts to be woollen fabrics within the meaning of entry 21 of the First Schedule to the Central Excises and Salt Act. Before the Supreme Court, the appellant Union of India maintained that the felts manufactured by the assessee were neither sheets nor fabrics and they were not material from which garments could be prepared nor they could be used as covering or for similar other purposes. Their Lordships of the Supreme Court rejected the contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llen fabrics" (or, as the case may be, "cotton fabrics"). 8. We have applied our mind thoroughly to the subtlety introduced herein by the petitioner's learned counsel. According to the Webster's New International Dictionary, already employed by us, the word "fabric" means cloth that is woven or knit from fibres. Cloth or fabric is the end-product of the process of weaving or knitting of fibres, cotton or woollen, as the case may be. But that is a technical or scientific meaning of the word "fabric". The Supreme Court in the afore-quoted case patently drew the distinction between "woven material" and "knitted material" and spelled out that woven material even in the shape of garments was within the meaning of "fabrics" but not "knitted mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntain that the term "woollen fabrics" as employed in item No. 21 of the First Schedule to the Central Excises and Salt Act, was wide enough to include therein "hosiery goods". What is true of "woollen fabrics" is true of "cotton fabrics" wherein items such as dhotis, saris, chaddars, bed-sheets, bed spreads counterpanes, table-cloth, embroidery pieces, etc., have been included. 9. Thus, for what has been said above, it is our considered view that "hosiery goods" can, by no means, be termed as "declared goods" so as to fall within the ambit and scope of section 14 of the Central Sales Tax Act, 1956., Therefore, we answer the question, posed at the very outset, in the negative. i.e., against the assessee and in favour of the revenue. Ordere ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
