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Issues: Whether HDPE/PP woven fabric falls within Entry 51 of Schedule B of the Haryana Value Added Tax Act, 2003 as artificial silk and is therefore exempt from tax.
Analysis: The question stood concluded by an earlier Division Bench decision holding that HDPE woven fabric falls within Entry 51 of Schedule B. The clarification that such goods were unclassified and taxable at the higher rate was found to be inconsistent with the settled interpretation of textile inclusive of artificial silk. The same legal position was applied to the present batch of appeals.
Conclusion: HDPE/PP woven fabric falls within Entry 51 of Schedule B of the Haryana Value Added Tax Act, 2003 and is exempt from payment of tax.