Specific tariff entry overrides general concession for branded ready-made garments under sales tax law
Ready-made garments sold under a registered brand name are treated as articles of ready-to-wear apparel specifically covered by item 87 of the First Schedule, which prescribes tax at 5% at the point of first sale. The commentary explains that the notifications under section 17 of the Tamil Nadu General Sales Tax Act, 1959 applied only generally to ready-made goods made of cloth and could not prevail over the later, specific schedule entry. It also notes that the date of receipt or renewal of the trade mark certificate was not decisive, because registration existed with effect from 12 May 1975. The stated principle is that a specific entry overrides a general concessional notification.
Issues: Whether ready-made garments sold under a brand name registered under the Trade and Merchandise Marks Act, 1958, were taxable at the concessional rate under the notifications issued under section 17 of the Tamil Nadu General Sales Tax Act, 1959, or at 5% under item 87 of the First Schedule.
Analysis: The notifications under section 17 were held to apply generally to ready-made goods made of cloth and not specifically to ready-made garments sold under a registered brand name. Item 87 of the First Schedule, introduced later, specifically covered articles of ready-to-wear apparel, including ready-made garments sold under a brand name registered under the Trade and Merchandise Marks Act, 1958, and prescribed tax at 5% at the point of first sale. Applying the settled principle that a specific entry overrides a general one, the Court held that the assessee's sales fell squarely within item 87. The contention based on the date of receipt or renewal of the trade mark certificate was rejected because the record showed registration with effect from 12 May 1975.
Conclusion: The sales of the ready-made garments were liable to tax at 5% under item 87 of the First Schedule, and the concessional rate under the notifications was not applicable.
Final Conclusion: The revision failed, and the assessment made by the authorities below was sustained.
Ratio Decidendi: Where a commodity is specifically covered by a charging schedule entry, that specific entry governs liability and excludes reliance on a general exemption or concessional notification covering the commodity in broader terms.
TaxTMI 
AI Drafter ✕
TaxTMI 
