1999 (12) TMI 760

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....assed by the Sales Tax Tribunal, Agra. I have heard the learned counsel for the revisionist and the learned Standing Counsel. The dealer is a manufacturer of cotton pattas or cotton belting material. It was claiming exemption from sales tax in pursuance of a notification issued under section 4 of the U.P. Sales Tax Act. The same was denied to it because of another notification under section 3 of the said Act. The Tribunal has upheld the taxability of the turnover of sales of the aforesaid material at the rate of 7 per cent. In the present revision, the taxability of the turnover under the U.P. Sales Tax Act is not disputed. What has been contended is that cotton belting is a cotton fabric which is a declared goods under the Central Sales....

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....on under section 3-A of the Act. The matter went to the honourable Supreme Court at the instance of the Commissioner of Sales Tax in Commissioner of Sales Tax v. Agra Belting Works [1987] 66 STC 1; 1987 UPTC 850, and this Court's view was negatived holding that by the issue of a notification under section 3-A of the Act, the exemption granted by a notification under section 4 of the Act stood withdrawn. In this judgment also, it was recognised that the cotton patta manufactured by the revisionist was an item of cotton fabric. Thus, it was never in dispute that cotton belting is a cotton fabric. Under section 14 of the Central Sales Tax Act, the list of declared goods includes "cotton fabrics" in item No. (iia) as under: "(iia) cotton fab....

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....higher rate of tax by changing the description of the goods. The cotton belting manufactured by the dealer was held to be cotton fabric by this Court and that view was not challenged before the Supreme Court. Even otherwise the cotton belting is a material which prima facie falls in the description of cotton fabrics, as defined in section 14 of the Central Sales Tax Act read with the entry, reproduced above, in the Central Excises and Salt Act. The contention of the learned Standing Counsel that the list given in section 14 of the Central Sales Tax Act is exhaustive, as held by the honourable Supreme Court in State of Tamil Nadu v. Pyare Lal Malhotra [1976] 37 STC 319; 1976 UPTC 282, is correct, but what is exhaustive is only the list and....

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.....B. Rohtagi and Aparna Rohtagi Jain, Advocates, for the assessee. ORDER Upon the material available, there is no reason to doubt that the cotton belting that the assessee manufactures falls within the scope of section 14(iia) of the Central Sales Tax Act, 1956, as it read at the relevant time. That entry, in turn, refers to item 19 of the First Schedule to the Central Excises and Salt Act, 1944, whereunder "cotton fabrics" mean "all varieties of fabrics manufactured either wholly or partly from cotton..........". The civil appeal of the sales tax authorities must, therefore, be dismissed. 2.. This brings us to the appeal filed by the assessee. Reference is made to section 3-AA of the Uttar Pradesh Sales Tax Act, 1948, which states that....