Predominant composition test controls classification of rubber beltings as cotton fabrics, barring tax under the State sales tax law.

Rubber beltings made from cotton canvas with rubber used only as a binding medium were treated as cotton fabrics because their essential and predominant composition was cotton, not rubber. Goods falling within the declared-goods category under item 19 of the First Schedule to the Central Excises and Salt Act, 1944, and the Central Sales Tax Act, 1956, could be taxed by the State only in the manner and at the point authorised by the State statute. As the Second Schedule to the Tamil Nadu General Sales Tax Act, 1959 contained no requisite entry for such goods, the State lacked authority to levy tax, and the revision failed.

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Issues: Whether rubber beltings manufactured from cotton canvas with rubber used only as a binding medium were cotton fabrics falling within the declared-goods regime and, in the absence of an entry in the Second Schedule to the Tamil Nadu General Sales Tax Act, 1959, could be taxed under that Act.

Analysis: The commodity was found on facts to consist predominantly of cotton canvas in multiple layers, with rubber used merely to bind the layers together. The legal character of the goods was held to depend on their essential and predominant composition, not on the incidental use to which they were put. Goods answering the description of cotton fabrics under item 19 of the First Schedule to the Central Excises and Salt Act, 1944, and treated as declared goods under the Central Sales Tax Act, 1956, attracted the statutory restriction that State tax could be levied only in the manner and at the point specifically provided by the State enactment. As the Second Schedule to the Tamil Nadu General Sales Tax Act, 1959 did not provide the requisite entry for such goods, the State lacked authority to levy tax on them.

Conclusion: The rubber beltings were correctly treated as cotton fabrics falling within the declared-goods category and were not taxable under the Tamil Nadu General Sales Tax Act, 1959; the revision therefore failed.

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