Water-proof synthetic fabric exemption prevails where a notification's annexure specifically includes such goods despite a broader exclusion.

An exemption notification excluding H. D. P. E. fabrics from the general textile exemption was held to preserve a specific carve-out for rubberised or synthetic water-proof fabrics in the annexure. Applying the earlier Division Bench view, the Court treated the annexure as an inclusive entry that overrides the broader exclusion where the product answers the specific description. A later single-judge contrary view was treated as per incuriam for not considering the binding authority or the full notification text. Accordingly, water-proof H. D. P. E. fabric falls within the exempt category under the notification.

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Issues: Whether H. D. P. E. fabric, when water proof, is exempt from sales tax under the relevant exemption notification.

Analysis: The notification excluded H. D. P. E. fabrics from the general exemption for textiles, but the annexure expressly included rubberised or synthetic water-proof fabrics, whether single textured or double textured. The Court applied the earlier Division Bench view that the annexure carved out a specific exemption within the exclusion and held that a water proof H. D. P. E. fabric falls within that exempt category. A later contrary single-judge view was treated as per incuriam because it did not properly consider the binding Division Bench authority or the full text of the notification.

Conclusion: H. D. P. E. fabric which is water proof is exempt from tax under the notification.

Ratio Decidendi: Where an exemption notification specifically includes water-proof synthetic fabrics in an annexure, a product otherwise falling within a broader excluded genus remains exempt if it satisfies the specific inclusive entry.

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