TaxTMI 
TaxTMI 
2009 (1) TMI 448
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....5-86 in respect of the assessment years 1977-78, 1978-79 and 1979-80. The Tribunal while accepting the application of the assessee has referred the following questions of law for opinion of this Court while exercising power under Section 22(1) of the Act: "(i) Whether mill made handkerchiefs are cotton fabric and covered under item 30 of Schedule 'B' appended to the Punjab General Sales Tax Act, 1948? (ii) Whether handkerchief is covered under the words readymade garments? (iii) Whether mill made handkerchiefs which are manufactured wholly out of cotton, manufactured in a textile mill and sold in the same condition on which Excise Duty has already been paid is covered under item 30 of Schedule 'B' appended to ....
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.... Revisional Authority. The argument of the learned State counsel that handkerchief is not an item of textile but it forms a part of readymade garments was accepted by the Tribunal by observing that tailored article made of cloth does not remain as cloth and as such it cannot be treated as item of textile and it is not eligible for exemption. 3. The Tribunal accepted the same argument and placed reliance on a Division Bench judgment of Madras High Court rendered in the case of Sri Kittappa Dress Manufacturing and Embroidery Works v. State of Madras - (1962) 13 STC 34 as it comes into ready use and after hemming the article can no longer retain its previous character of cloth though it is made of cloth. 4. We have heard the learned coun....
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....any tax on sale. Likewise, all varieties of textile covered by Item 29 on which knitting and embroidery work has been done are also tax free as per Entry 30. When the aforesaid entry is compared with the entry considered by the Division Bench of Madras High Court in the case of Sri Kittappa Dress Manufacturing and Embroidery Works (supra), it is found that the contents and language is entirely different. However, the definition of expression "cloth' has been culled out by the Division Bench from the judgment of Andhra Pradesh High Court rendered in the case of Rai Saheb Chedra Durvasulu v. Sales Tax Officer -(1961) 12 STC 158. The Andhra Pradesh High Court has defined the expression 'cloth' as under:- "It follows from the abo....
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....e handkerchiefs are not subjected to any knitting and embroidery. As already observed, handkerchiefs are hemmed and, therefore, it may fall within the meaning of 'cotton, woollen or silken textiles on which knitting and embroidery work has been done'. However, the question directly fell for consideration before the Division Bench Kerala High Court in Deputy Commissioner of Sales Tax v. Mohammed Abdul Khader - 1980 (6) E.L.T. 778 (Ker.) = (1980) 46 STC 512. The facts in that case are akin to the facts of the case in hand. The assessee in both the cases have purchased excise duty paid handkerchief from the Mill and without subjecting those to any process sold it in the market. The handkerchiefs have been sold in the same condition ....