1975 (10) TMI 87

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....mstances of the case, it is correct to hold that khadi silk is taxable as per provision in entry at serial No. 8 of Chapter IV at seven per cent or it is tax-free and comes under entry at serial No. 24 of Chapter I of the rate chart, which relates to khadi, handspun and hand-woven cloth and hand-spun fabrics?" In respect of the last year, the following questions have been referred for opinion of the court: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that khadi silk is taxable and is covered by the entry at serial No. 8 of Chapter IV of the rate chart and taxable at the rate of seven per cent? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was cor....

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....d to the last year, the Tribunal has found both tassar and silk goods to be taxable at seven per cent. 5.. Under section 5(1) of the Act, tax payable by a dealer is to be levied at five per cent on the taxable turnover. The first proviso authorises the State Government by notification to fix a higher rate of tax not exceeding seven per cent or a lower rate of tax on purchase or sale of any specified goods. Notification No. 33927-F. dated 30th December, 1957, has been made in exercise of the aforesaid power fixing both higher and lower rate of tax in respect of named goods. Section 6 of the Act authorises the State Government by notification and subject to such conditions and exceptions as may be specified to exempt from tax the sale o....

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....nclusion of the Tribunal that tassar articles are not liable to tax because they do not come within the entry at serial No. 8 of the notification of taxable commodities. 6.. In regard to silk goods, we find that item No. 8 in the list of taxable goods is very specific and appears to be pervasive. Law is fairly settled that the entries have to be harmoniously construed so that there may not be any confusion. In that view of the matter, silk goods would be exigible to sales tax as prescribed under item No. 8 of the list of taxable goods. During the first three years, the entry ran thus: "All silk goods excluding all mill-made or powerloom woven pure or artificial silk fabrics but including pure silk cloth of handloom origin when the pri....