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The State of Andhra Pradesh Vs. Bazar Industries - Court Judgment

SooperKanoon Citation
SubjectSales Tax
CourtAndhra Pradesh High Court
Decided On
Case NumberT.R.C. No. 122 of 1985
Judge
Reported in[1989]73STC186(AP)
ActsAndhra Pradesh General Sales Tax Act; Additional Duties of Excise (Goods of Special Importance) Act, 1957
AppellantThe State of Andhra Pradesh
RespondentBazar Industries
Advocates:Government Pleader for Commercial Taxes
Excerpt:
.....tax act, 1957 and additional duties of excise (goods of special importance) act, 1957 - whether plastic cloth manufactured by respondent-dealer falls under item 5 of fourth schedule to be exempted from tax - department contended it does not fall within that entry rather it should be treated as plastic article and taxed under item 113 of first schedule - tribunal accepted this contention - high court observed it is clear from a look at product that it is a case where a fabric is coated with artificial plastic material - held, it falls within item 5 of fourth schedule and decision of tribunal justified. - maximssections 2(xv) & 3(1) & (3): [v.v.s. rao, n.v. ramana & p.s. narayana, jj] ghee as a live stock product held, [per v.v.s. rao & n.v. ramana, jj - majority] since ages, milk..........a plastic cloth. item 5 of the fourth schedule reads thus : 'cotton fabrics, rayon or artificial silk fabrics and woollen fabrics.' 4. the explanation appended to the schedule says that item 5 shall have the same meaning as is assigned to these words in the additional duties of excise (goods of special importance) act, 1957. at the relevant time the entry in the 1957 act reads thus : (we are extracting the entry from the order of the tribunal about the correctness of which there is no dispute before us.) 'rayon or artificial silk fabrics means all varieties of fabrics manufactured either wholly or partly from rayon or artificial silk and includes embroidery in the piece, in strips or in motifs, fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of.....
Judgment:

Jeevan Reddy, J.

1. The question in this T.R.C. is whether the plastic cloth manufactured by the respondent-dealer falls under item 5 of the Fourth Schedule and, therefore, exempt from tax. According to the department, it does not fall within that entry and that it must be treated as plastic article and taxed under item 113 of the First Schedule to the A.P. General Sales Tax Act.

2. The dealer's plea has been accepted by the Tribunal though it was negatived by the assessing authority and the first appellate authority.

3. A piece of plastic cloth manufactured by the dealer-assessee herein has been produced by the learned Government Pleader for Commercial Taxes (the respondent-assessee is unrepresented). A look at the product shows that it is a case of overlaying the plastic over the cloth. Probably that is the reason why it is called as a plastic cloth. Item 5 of the Fourth Schedule reads thus :

'Cotton fabrics, rayon or artificial silk fabrics and woollen fabrics.'

4. The explanation appended to the Schedule says that item 5 shall have the same meaning as is assigned to these words in the Additional Duties of Excise (Goods of Special Importance) Act, 1957. At the relevant time the entry in the 1957 Act reads thus :

(We are extracting the entry from the order of the Tribunal about the correctness of which there is no dispute before us.)

'Rayon or artificial silk fabrics means all varieties of fabrics manufactured either wholly or partly from rayon or artificial silk and includes embroidery in the piece, in strips or in motifs, fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials.'

5. A reading of this definition shows that artificial silk fabrics include, inter alia, fabrics impregnated, coated or laminated with preparations of cellulose derivatives or of other artificial plastic materials. In this case it is clear from a look at the product that it is a case where a fabric is coated with artificial plastic material. It, therefore, clearly falls within item 5 of the Fourth Schedule of the A.P. General Sales Tax Act.

6. For this reason, we agree with the conclusion of the Tribunal and dismiss the T.R.C. No costs.

7. Petition dismissed.


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