Deputy Commissioner of Commercial Taxes, Tiruchirapalli Division vs Hindustan Fabrics

Ismail, J.—This tax revision case raises a very narrow question with reference to the assessment to sales tax. The turnover in dispute is a

sum of Rs. 18,233.13. The respondent-dealer had manufactured banners, hangers, flags, etc., out of textiles. Its claim before the Appellate

Assistant Commissioner of Commercial Taxes and the Tribunal was that these banners, hangers and flags made out of textiles, themselves

constitute textiles and fall within entry 4 of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959 and the Tribunal accepted this

contention and held that the turnover referred to above was exempt from sales tax. This conclusion is challenged in this revision.

Entry 4 of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959, read as follows, as it was on the relevant date:

All varieties of textiles (other than durries, carpets, druggets and pure silk cloth) made wholly or partly of cotton, staple fibre, rayon, artificial silk or

wool including handkerchiefs, towels, napkins, dusters, cotton velvets and velveteen, tapes, niwars and laces and hosiery cloth in lengths.

The question for consideration is whether the banners, hangers and flags involved in this case can be said to be textiles within the scope of this

entry.

The learned counsel for the respondent drew our attention to a few decisions of this court and in particular, to the decision in Government of

Madras v. Madurai Braided Cord and Tape Producers Co-operative Industrial Society [1968] 22 S.T.C. 470, where it has been held that

braided cords are textiles within the meaning of this entry and in State of Madras v. T. T. Gopalier [1968] 21 S.T.C. 451, where it has been held

that the term ""textiles"" should be interpreted broadly in the sense of products obtained by weaving and so interpreted ""braided cords"" and

contended that the assessee-respondent would be entitled to the exemption provided for under that entry. We are of the view that neither of these

decisions is of any assistance to the case of the assessee in the present case.

The entry referred to above is both exclusive and inclusive. In view of this feature, it must be held that the entry is exhaustive. It is said to include

tapes, niwars and laces and, therefore, it is quite possible that this court when it rendered the decision in the two cases referred to above was

guided by the use of these expressions in the entry. As far as the present case is concerned, banners, hangers and flags are commercially different

entities known and recognised as such and, therefore, we are of the opinion that the same cannot fall within the scope of entry 4 of Schedule III.

Consequently, we allow this revision case, set aside the order of the Sales Tax Appellate Tribunal and restore the order of the Appellate Assistant

Commissioner, bringing the said turnover to tax. There will be no order as to costs.