Broad construction of hosiery goods supports concessional sales tax treatment for knitted cashmilon wear.

Cashmilon knitted hosiery goods were treated as hosiery goods for sales tax classification because the expression was construed in its broader commercial sense to include knitwear such as socks, tops, sweaters, scarves and mufflers. Entry 14, Part D did not apply because it was confined to woollen hosiery goods, and Entry 18, Part C did not apply because ready-to-wear apparel expressly excluded hosiery goods. The appropriate classification was Entry 20, Part B, covering hosiery goods other than those made wholly or partly of wool, making the goods eligible for the concessional 3 per cent rate, subject to proof before the assessing authority that they are knitted wear and not woollen goods.

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Issues: Whether cashmilon knitted hosiery goods fall within Entry 20, Part B of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959 and are therefore taxable at the reduced rate of 3 per cent under the notification issued under section 17(1) of that Act.

Analysis: The goods in question were found to be knitted articles such as socks, tops, sweaters, scarves, mufflers and similar wear. Entry 14, Part D, dealing with hosiery goods made wholly or partly of wool, did not apply because the goods were not woollen. Entry 18, Part C, dealing with ready-to-wear apparel or ready-made garments, also did not apply because it expressly excluded hosiery goods. Entry 20, Part B, covering hosiery goods other than those made wholly or partly of wool, was held to be the appropriate entry. The expression hosiery goods was construed in its wider sense to include knitwear, and the samples produced before the Tribunal answered that description.

Conclusion: The knitted cashmilon goods marketed by the association's members were held to be hosiery goods covered by Entry 20, Part B, and eligible for the reduced rate of tax at 3 per cent, subject to proof before the assessing authority that the goods are knitted wear and not made wholly or partly of wool.

Final Conclusion: The declaration sought was granted in substance, and the goods were held entitled to the concessional tax treatment under the relevant statutory entry and notification.

Ratio Decidendi: Hosiery goods, for sales tax classification purposes, include knitted wear in a broad commercial sense unless the statutory entry expressly excludes the goods or limits them to another category.

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