Unstitched embroidered ladies suits fall outside textile exemption and are taxable under the residuary entry.

Bulk textile material that is cut to length, embroidered and given pico work, but left unstitched for the consumer, is treated as a distinct commercial article rather than mere textile fabric. For exemption purposes under the Uttar Pradesh Value Added Tax Act, the product did not fall within the Schedule I textile entry, because it had ceased to be plain textile material, and it also did not qualify as "other textile made ups" in Schedule II, which covers already manufactured or stitched articles read ejusdem generis with items such as bedsheets and pillow covers. In the absence of a specific exempt or concessional entry, the residuary entry in Schedule V applied and the commodity was taxable.

---

---

Issues: Whether an embroidered ladies suit sold in unstitched form falls within the exempt category of textiles under Schedule I, within the category of other textile made ups under Schedule II, or under the residuary entry in Schedule V of the Uttar Pradesh Value Added Tax Act, 2008.

Analysis: The definition of manufacture in Section 2(t) is broad and includes processing, ornamenting, finishing, and adapting goods. The commodity sold by the dealer was prepared by cutting bulk textile material to suit length, adding embroidery and pico work, but leaving the final stitching to the consumer. On that basis, the product was not a textile fabric in the sense of Entry 21 of Schedule I because it had ceased to be mere textile material and had assumed the character of a distinct commercial article. Entry 16 of Schedule II also did not apply because other textile made ups denotes articles already manufactured or stitched from cloth, and the expression must be read ejusdem generis with bedsheets and pillow covers. Since the product did not fit any specific exempt or concessional entry, the residuary entry in Schedule V applied.

Conclusion: The commodity was not classifiable as exempt textile under Schedule I and was not covered by Entry 16 of Schedule II. It fell under the residuary entry in Schedule V and was taxable accordingly, in favour of Revenue.

Ratio Decidendi: Where bulk textile material is merely cut, embroidered, and otherwise processed, but remains unstitched as a consumer-ready garment, it is not treated as textile or a textile made up for exemption purposes and is classifiable under the residuary entry if no specific entry applies.

---