TaxTMI 
TaxTMI 
1970 (4) TMI 133
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....958? (2) Whether the penalty of Rs. 1,500 in the assessment under the State law and Rs. 500 in the assessment under the Central law for nonsubmission of returns was properly and legally imposed?" 2.. M/s. New Bhopal Textile Ltd., Bhopal (hereinafter referred to as the assessee) is a registered dealer engaged in the business of manufacture and sale of textiles. For the period 1st April, 1963, to 31st March, 1964, the gross turnover of the assessee was determined at Rs. 1,33,90,060.95 and the taxable turnover at Rs. 14,54,985.35. According to the assessment order of the Assistant Commissioner, Sales Tax, Bhopal, the total value of hessian sold was Rs. 60,000. By his assessment order under section 19(4) of the Act, he assessed sale at Rs....
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.... and weft threads pass over and under each other alternately. The term "cloth" is not restricted to fabric used for garments. According to Oxford English Dictionary, it means a piece of pliable woven or felted stuff, suitable for wrapping or winding round, spreading of folding over, drying, wiping or other purpose; a swaddling or winding cloth, wrap, covering, veil, curtain, handkerchief, towel, etc. In the Webster, New 20th Century Dictionary, it bears the following meaning: "A woven knitted or pressed fabric of fibrous material, as wool, hair, cotton, flex, hemp, synthetic fibres etc., used for garments or other covering and for various other purposes, as household furnishings......................." In Webster's New International D....
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.... a specific entry for it, either in the First Schedule or in the Second Schedule. But that is not so. This lends support to the view we take. 13.. Then, again, it may be noted that just as cotton, cotton yarn, cotton yarn waste or cotton waste are mentioned in the Second Schedule, Part I, so also jute has a separate entry in that Schedule, but there is no entry of hessian cloth, although there is entry No. 20 which makes "pure silk fabrics and articles made thereof" chargeable to sales tax. It appears that by an amendment in 1967, the entry pertaining to pure silk fabrics and articles made of pure silk has been deleted. 14.. Shri R.S. Dabir, learned counsel for the Sales Tax Commissioner, relied on the Additional Duties of Exci....
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.... "When sold by a dealer registered under the Madhya Pradesh General Sales Tax Act, 1958, on his furnishing of a true declaration in the appended form that the goods in respect of which exemption is claimed have neither been imported nor manufactured by him." The argument is that if hessian cloth had been exempted under entry No. 6, there was no need for this notification and that it was by virtue of this notification alone that the assessee could claim exemption from sales tax. That could be done only when the restrictions and conditions stated in the notification were satisfied. In the present case, those conditions were not satisfied. In answer to this argument, learned counsel for the assessee lays stress on the word "hessian". His ar....