STATE OF TAMIL NADU Vs. EAST INDIA RUBBER WORKS MADRAS

JUDGEMENT

(1.) THE assessees in this case claimed exemption in respect of a turnover of Rs. 6, 77, 896. 55 relating to the sales of waterproof cloth in the course of the assessment under the Madras General Sales Tax Act, 1959, for the assessment year 1959-60 on the ground that waterproof cloth is covered by item 4 of the Third Schedule to the said Act. THE assessing authority allowed exemption from tax on the said turnover, accepting the assessees'case that waterproof cloth came within item 4 of the Third Schedule.

(2.) THE Deputy Commissioner of Commercial Taxes acting under section 32 of the Act, revised the order of the assessing authority granting the said exemption and held that the assessees were not entitled to the exemption as the waterproof cloth dealt with by the assessees would not fall within item 4 of Schedule III.

(3.) THE expression "textiles" usually refers to cloths or fabrics made by weaving, knitting, netting or braiding and classified according to their component fibres such as silk, wool, cotton, linen and such synthetic fibres as rayon, nylon, etc. THE essence of textiles consists in the basic process of spinning and weaving. In State of Madras v. T. T. Gopalier this court held that the term "textile" as used in entry 4 of schedule III should be interpreted broadly in the sense of products obtained by weaving and that, if so interpreted, "braided cords" would also be entitled to the exemption provided under that entry. In Government of Madras v. M. B. C. & T. P. C. Industrial Society this court had to consider the meaning of the words "fabric" and "textile". " Fabric" has been understood in that case as thing put together; woven material; texture, tissue. THE word "textile" has been taken to mean woven, suitable for weaving as textile fabrics. Deputy Commissioner of Commercial taxes v. Madurai Printing Tape Factory considered the question as to whether "tape" will fall within entry 4 of the Third schedule. It was held that as the ingredient of textile is weaving what is not woven can hardly be described as textile, and that "tapes" made as a result of weaving would clearly be within that entry. THE learned Chief Justice, speaking for the bench, expressed the view that weaving is not necessarily limited to using warp and woof pattern and that what is necessary for weaving is that threads are bound together in order to produce a pattern of fabric or tape and make them into a product of utility and that in modern advancement of textile technology, it is possible, without using the warp and woof pattern, to produce tape by holding the threads together lengthwise by using gum. THErefore, such a tape made without using warp and woof would also be a textile falling within time 4 of Schedule III. In all these cases, the court, following the dictionary meaning of the word "textile", has held that textile in its broad sense means woven, suitable for weaving textile fabrics. THE above decisions deal with braided cords and tapes which are admittedly woven materials, either of warp or woof pattern or otherwise, and those cases may not be of much help in the present case. Here though the base cloth is woven and, therefore, a textile, the superimposition of rubber or P. V. C. solution makes it a different article of commerce such as rexine, P. V. C. cloth and rubberised or waterproof cloth. THE learned counsel for the assessees relies on the decision in Workers v. United Bleachers (P.) Ltd. 1960 AIR (Mad) 131.) to substantiate his contention that the mere application of the rubber or P. V. C. solution to the base cloth will not alter the character of the material as a woven fabric. In that case, the process of colouring has been held not to change the character of the articles as textiles.