Hosiery classification for cotton mufflers and topas determined sales tax treatment under the applicable notification.

Cotton mufflers and topas were classified as hosiery goods rather than ready-made garments or unclassified goods. The article explains that "garments" is broad, but "hosiery" in modern usage covers knitwear; because these articles were machine-knitted, worn next to the skin, and had the characteristics of knitted clothing, they fell within the notification for hosiery made of pure cotton or silk. On that classification, they attracted the applicable sales tax rate for hosiery goods, and the position was accepted in favour of the assessee.

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Issues: Whether cotton mufflers and topas are liable to sales tax as ready-made garments, hosiery goods, or unclassified goods for the assessment years 1964-65 and 1961-62.

Analysis: The question turned on the proper classification of cotton mufflers and topas. The expression "garments" is of wide import and may include articles of clothing generally, but "hosiery" has also acquired a wider meaning in modern usage and denotes knitwear. The articles in question were knitted garments, machine-knitted, and worn next to the skin. On that basis they satisfied the characteristics of hosiery goods and fell within the notification applicable to hosiery made of pure cotton or silk. Once so classified, they could not be treated as ready-made garments or as unclassified goods.

Conclusion: Cotton mufflers and topas are hosiery goods and are taxable at 1 paisa per rupee. The answer is in favour of the assessee.

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