PVC-coated cotton fabrics and tax exemption: express exclusion in State entry prevailed over Central Excise tariff classification.

PVC coated cotton fabrics were held not exempt under Entry 53 of the U.P. Trade Tax Act because the State entry expressly excluded PVC fabrics. The SC accepted the High Court's view that the product fell within that exclusion, and held that classification under Chapter 59 of the Central Excise Tariff Act was only of limited relevance where the wording of the tariff heading materially differed from the State entry. On the express language of Entry 53, no basis for exemption survived and the assessee's challenge failed.

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Issues: Whether PVC coated cotton fabrics were exempted under Entry 53 of the Schedule to the U.P. Trade Tax Act.

Analysis: Entry 53 expressly excluded PVC fabrics from the taxable textile entry, and the Court accepted the High Court's view that the appellant's product fell within that exclusion. The Court also held that the classification under Chapter 59 of the Central Excise Tariff Act, 1985 was of limited relevance because the wording of that tariff heading differed materially from the language of Entry 53. On the express terms of the State entry, no basis for exemption survived.

Conclusion: PVC coated cotton fabrics were not exempted under Entry 53, and the assessee's challenge failed.

Ratio Decidendi: Where the relevant State taxing entry expressly excludes PVC fabrics, a different classification under the Central Excise Tariff cannot control the exemption question if the statutory language is materially different.

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