- (1.) We have before us a petition under Art. 32 of the Constitution and two appeals by special leave from the judgment of the High Court of Rajasthan between the same parties. The three cases before us raise the same question of law. It is: Do the goods called "Rayon tyre Cord Fabric" sold by the Delhi Cloth and General Mills Co. Ltd. to manufacturers of tyres, who use it for the purpose of impregnating it with rubber, fall under Entry 18 of the Schedule of the Rajasthan Sales Tax Act, 1954 (hereinafter referred to as 'the Act')
(2.) The schedule mentioned above gives a list of goods on the sale or purchase of which no tax is payable under the Act. The relevant Entry 18, which was omitted in 1973, reads as follows: "18. All cotton fabrics, rayon or artificial silk fabrics, woollen fabrics, sugar and tobacco, as defined in the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (Central Act 58 of 1957)." Section 2 (c) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957, lays down: "2 (c) the words and expressions 'sugar'. 'tobacco', 'cotton fabrics', 'silk fabrics', 'woollen fabrics' and 'rayon or artificial silk fabrics; shall have the meanings respectively assigned to them in Items Nos. 1, 4, 19, 20, 21 and 22 of the First Schedule to the Central Excise and Salt Act, 1944."
(3.) The writ petition of the Delhi Cloth and General Mills Co. Ltd. states that "rayon tyre cord fabric" is "manufactured out of rayon yarn and cord". It goes on to explain that this fabric is "a textile consisting of rayon threads in the warp and cotton threads in the weft and is manufactured on weaving looms in the same manner as in other ordinary textile", It is also stated there: "The fabric consists of more than 60% by weight of rayon and is unprocessed. The weft threads are not used merely for tying the warp threads together for the purpose of convenient transport or storage but form an integral part of the whole fabric".;