Textile fabric classification under sales tax law upheld for tyre cord warp sheets, preserving exemption

Cotton tyre cord warp sheet and rayon tyre cord warp sheet were treated as textile fabrics for classification under item 4 of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959. The Court accepted the Tribunal's application of the statutory description and the Supreme Court's approach to tyre cord fabrics, holding that the decisive question was whether the goods answered the entry for textile fabrics. On that basis, the goods fell within the exempted category and the Tribunal's classification was left undisturbed.

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Issues: Whether cotton tyre cord warp sheet and rayon tyre cord warp sheet are textile fabrics falling within item 4 of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959 and therefore exempt from tax.

Analysis: The Tribunal had treated the goods as textile fabrics by applying the Supreme Court's approach to tyre cord fabrics. The deciding consideration was whether the goods answered the description of textile fabrics within the relevant schedule entry. On the facts and the governing classification principle, the Court accepted the Tribunal's view that the goods fell within the exempted category.

Conclusion: The goods were held to be textile fabrics within item 4 of the Third Schedule and were exempt from tax.

Final Conclusion: The revisions failed and the Tribunal's classification of the goods was left undisturbed.

Ratio Decidendi: Goods that satisfy the statutory description of textile fabrics are to be classified accordingly for sales tax purposes and, where the schedule so provides, treated as exempt.

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