VRAJLAL BHUKHANDAS Vs. STATE OF GUJARAT
HIGH COURT OF GUJARAT
Click here to view full judgement.
P.N.BHAGWATI, J.M.SHELAT -
(1.) The question arising in this Reference is whether Shetranjis i.e. cotton carpets manufactured on handloom are handloom cloth within the meaning of Entry 29 of Schedule A to the Bombay Sales Tax Act 1959
(2.) The petitioners are dealers registered under the Act and they sold a Shetranji or a carpet for a sum of Rs. 8/under a bill dated the 8th of February 1961. Under sec. 52 of the Act they applied to the Deputy Commissioner of Sales Tax for determining whether any tax was payable in respect of the sale of the aforesaid carpet contending that the aforesaid carpet was covered by Entry 29 in Schedule A to the Act. The Deputy Commissioner by his order dated May 30 1961 held that the carpet was not cloth and was not therefore covered by the said Entry The petitioners thereafter preferred an appeal before the Sales Tax Tribunal contending that the word Cloth should be interpreted in a wider sense so as to include all kinds of fabrics woven out of cotton yarn and therefore the aforesaid carpet should not be considered as an article made from cloth but handloom cloth covered by Entry 29. The Tribunal dismissed the appeal confirming the view of the Deputy Commissioner. At the instance of the petitioners the Tribunal referred the following question to us:- Whether on the facts and circumstances of the case sales of Shetranji woven on handloom out of cotton yarn are covered by entry 29 of Schedule A to the Bombay Sales Tax Act 1959
(3.) Schedule A contains entries in respect of goods the sale or purchase of which is free from all taxes. entry 29 in that Schedule with which we are for the moment concerned in this Reference provides as follows:- Handloom cloth of all varieties excluding pure silk cloth.;
Copyright © Regent Computronics Pvt.Ltd.