Broad construction of artificial silk fabrics brings polyethylene woven fabric within sales tax exemption.

High density polyethylene woven fabrics were treated as falling within "artificial silk fabrics" for sales tax exemption purposes because the expression was construed broadly according to its trade and technical meaning. Artificial silk was understood as a wider genus of man-made fibres, with rayon being only one species, and polyethylene fibre woven into fabric was regarded as silk-like rather than a natural silk product. Departmental treatment and the Central Government exemption were cited as supporting this understanding, but not as controlling authorities. On that basis, the fabrics qualified for exemption under item 4 of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959.

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Issues: Whether high density polyethylene woven fabrics fall within the expression "artificial silk fabrics" in item 4 of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959, by reference to item 22 of the First Schedule to the Central Excises and Salt Act, 1944.

Analysis: The exemption under the sales tax schedule depended on the meaning of "rayon or artificial silk fabrics" as used in the excise tariff. The expression was construed broadly in light of its trade and technical meaning. Artificial silk was treated as a wider genus covering man-made fibres, of which rayon is only one species. High density polyethylene, when converted into fibre and woven into fabric, was held to be a silk-like man-made fibre rather than a natural silk product. The departmental treatment and the Central Government exemption were relied upon as supportive of this accepted understanding, without treating them as controlling.

Conclusion: High density polyethylene woven fabrics are artificial silk fabrics for purposes of item 22 of the First Schedule to the Central Excises and Salt Act, 1944, and therefore qualify for exemption under item 4 of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959.

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