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of <h1>High Court Upholds Tax Classification of Sportswear as Garments Over Sports Goods</h1> The Allahabad High Court dismissed revisions concerning the classification of sportswear for taxation purposes, affirming their treatment as ready-made ... Whether the sportswears are taxable as sports goods or as ready-made garments? Held that:- Even if the wears manufactured by a dealer is used by sportsmen and so far as generally are kept and sold by dealers in sports goods, yet they are garments which possibly cannot be disputed. There being no specific entry of sports wear, the commodities in question have been rightly taxed treating them as garments. The word 'garment' is a term of wide sweep and will include all kinds of garments, unless excluded otherwise. The above view finds further support from the fact that the entry relating to the goods for indoor or outdoor games or sports is exclusive and inclusive as well. It excludes items which are included in any other notification issued under the Act and it includes rubber bladders of various kinds of balls, toys, swing, jhoola, medal, cups, trophies, badges and whistles. Both exclusion and inclusion have been provided in the said entry relating to the goods for indoor games or sports. Nothing can be added or subtracted except the one as provided for. If the interpretation as put by the learned counsel for the dealer is accepted there would have no reason to include rubber bladders of various kinds of balls, toys, swing, jhoola, medal, cups, trophies, badges and whistles. These items are connected with games and sports but they themselves are not goods for indoor and outdoor sports or games and that is the reason they have been included by making express provision for them. Revision dismissed. Issues:Assessment of sportswear as sports goods or ready-made garments.Analysis:The revisions before the Allahabad High Court related to the assessment years 1992-93 to 1995-96 and focused on whether sportswear should be taxed as sports goods or ready-made garments. The applicant, a private limited company in the sports goods business, argued that their products should be taxed as sports goods under a specific entry, while the assessing officer treated them as ready-made garments. The key question was the classification of items like tennis shirts, jerseys, T-shirts, etc. as either sports goods or garments.The court examined the relevant notifications and legal provisions. The applicant's counsel contended that even if the items were considered ready-made garments, they should be taxed under the specific entry for goods related to indoor or outdoor games or sports at a lower rate. However, the court disagreed, emphasizing the distinction between goods for games or sports and sportswear. The court interpreted the legislative intent behind the specific entry and concluded that it referred to items used in playing games or sports, such as balls, bats, etc.The court referenced a previous case involving the classification of sports shoes as footwear, highlighting that specific categorizations take precedence over general associations with sports. The definition of 'sport' was also discussed to clarify the scope of the term. Ultimately, the court held that since there was no specific category for sports goods, the items in question were rightly taxed as garments due to the broad definition of the term.Considering the inclusive and exclusive nature of the entry for goods related to indoor or outdoor games or sports, the court dismissed the revisions. It emphasized that the entry's provisions encompassed specific items connected to games and sports, excluding general sportswear. The court found no merit in the applicant's arguments and upheld the tax treatment of the items as garments, based on the legal framework and interpretations presented.In conclusion, the Allahabad High Court dismissed all the revisions related to the classification and taxation of sportswear, affirming the assessment of the items as ready-made garments rather than sports goods. The judgment provided a detailed analysis of the legal provisions, notifications, and interpretations to support its decision, highlighting the distinction between goods for games or sports and sportswear in the context of taxation.
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