Coated fabric classification: product fell within the exempt fabrics entry, not the taxable plastics entry.

A coated fabric that fell within the statutory definition of rayon or artificial silk fabrics was classified under item 5 of the Fourth Schedule and treated as exempt from tax. The Court applied the definition adopted from the Additional Duties of Excise (Goods of Special Importance) Act, 1957, which includes fabrics impregnated, coated or laminated with cellulose derivatives or other artificial plastic materials. Because the product was found to be a fabric coated with artificial plastic material, it did not fall under the general taxable entry for plastic articles in item 113.

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Issues: Whether plastic cloth manufactured by the dealer fell within item 5 of the Fourth Schedule to the Andhra Pradesh General Sales Tax Act and was therefore exempt from tax, or whether it was a plastic article taxable under item 113 of the First Schedule.

Analysis: Item 5 of the Fourth Schedule covers cotton fabrics, rayon or artificial silk fabrics, and woollen fabrics, with the explanation adopting the meaning assigned in the Additional Duties of Excise (Goods of Special Importance) Act, 1957. The relevant statutory definition of rayon or artificial silk fabrics includes fabrics impregnated, coated or laminated with preparations of cellulose derivatives or other artificial plastic materials. On inspection, the product was found to be a fabric coated with artificial plastic material, and therefore answered the statutory description of covered fabrics rather than a taxable plastic article.

Conclusion: The product fell within item 5 of the Fourth Schedule and was exempt from tax; the contrary classification under item 113 was rejected.

Ratio Decidendi: Where a statutory entry expressly includes fabrics coated or laminated with artificial plastic materials, a coated fabric is to be classified under that entry and not under a more general taxable description of plastic articles.

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