Cotton and hair beltings treated as exempt goods where textile content placed them outside the revenue's taxing entries.

Cotton beltings and hair beltings were discussed in relation to Item 4 of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959, which exempts cotton, woollen and rayon artificial silk fabrics as defined in the Central Excise and Salt Act, 1944. The assessee relied on a test certificate showing substantial textile content, while the Revenue invoked entries relating to machinery components and vulcanised rubber belts. On the materials placed, the goods were treated as not falling within the taxing entries relied on by the Revenue and were regarded as exempt goods.

---

---

Issues: Whether the sale of cotton beltings and hair beltings was exempt from sales tax under Item 4 of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959.

Analysis: Item 4 of the Third Schedule grants exemption to cotton fabrics, woollen fabrics and rayon artificial silk fabrics as defined in the relevant items of the First Schedule to the Central Excise and Salt Act, 1944. The assessee produced a test certificate showing that the beltings contained substantial textile content. The entries in the Tamil Nadu General Sales Tax Act relied on by the Revenue, including the provisions dealing with machinery components and vulcanised rubber belts, did not appropriately cover cotton beltings or hair beltings. On the materials placed, the goods were held not to fall within the taxing entries invoked by the Revenue and were treated as exempt goods.

Conclusion: The sale of cotton beltings and hair beltings was exempt from sales tax, and the assessee succeeded.

---