9911796707
TMI Blog1996 (11) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... is a manufacturer of 'hosiery. cloth' and 'hosiery goods' and is registered under the Central Sales Tax Act. In its application for registration, it mentioned the goods to be manufactured by it as 'manufacture of hosiery'. The same was mentioned in the certificate of registration granted to it and in the column meant for mentioning the goods that the dealer was entitled to purchase under Section 8 of the Central Sales Tax Act, the registration certificate mentioned certain machines. 4.Same was the position of the application moved by the dealer for registration. Copies of the application for registration and the registration certificate have been annexed as Annexures '1' and '2' respectively to the revision petition showing that the regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iery, as mentioned in the registration certificate, permits him to manufacture hosiery cloth which it was doing right from the inception and no objection was raised by the assessing officer, who, even for the year under consideration completed the assessment accepting that there was no violation of the terms of registration and misuse of the goods purchased from outside the State after availing the tax concession. 6.The learned Standing Counsel contended that 'Hosiery' does not include 'hosiery cloth' and it means only hosiery goods like banyan, underwears and covering for legs and feet like socks and stockings and, therefore, the use of the yarn for manufacture of hosiery cloth was impermissible and the penalty was rightly levied. 7'Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder-clothing. This ruling can lead one to the belief that hosiery cloth also being a knitted article is hosiery. 9Wherever the Legislatures thought it necessary to. distinguish between hosiery cloth and hosiery goods, they have done so. In Jaipur Hosiery Mills Private Ltd. and Others v. State of Rajasthan and Others - 19 STC 416, a reference is made to a notification of the Rajasthan Government excluding hosiery products from the exemption granted to garments. 10In. Sri Ram Hosiery Works v. The State of Bihar - 34 STC 320, the Hon'ble Patna High Court held that hosiery banyan and hosiery cloth are different articles. In this judgment, reference is made to a notification that described the goods at Item No. 27 as 'hosiery cloth sold in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to clarify whether he would manufacture hosiery cloth or other hosiery goods and year after year, he did not raise any objection till an audit party took a contrary view. The Tribunal has mentioned that the dealer had applied for amendment of the registration certificate to include therein the purchase of yarn of all kinds. That application was made as early as 25th January, 1974, and the assessing officer never disposed of the same and the assessee continued to import yarn of all kind without any objection by the assessing officer. 13.The aforesaid facts and circumstances show that the dealer had a reasonable cause for believing that he is authorised to manufacture hosiery cloth from the yarn imported by it from outside the State avai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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