1976 (9) TMI 153

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....x Act (hereinafter referred to as the "Act"), for opinion of the court: "(1) Whether, in the facts and circumstances of the case, bed sheets, napkins and towels, after being manufactured in the mill when cut into sizes and stitched at both ends and pillow covers manufactured by stitching three ends of mill-made cloth after being cut into particular sizes are cloths or clothes? (2) Whether, i....

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....69-70 and 1970-71 also under section 12(5) of the Act and with these assessments we are now concerned. The assessee contended while challenging the assessments that the items were mill-made goods and came within entry No. 33 relating to tax-free items. The assessee's contention has been rejected throughout. 3.. The entry in question reads thus: "All mill-made fabrics made wholly or partly of....

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....h is cut into pieces and the two ends are said to be stitched. There is indeed no conversion and bed sheets continue still to be mill-made cloth. So far as towels are concerned, the same process more or less is adopted. We do not think, merely because a long sheet of mill-made cloth is cut into pieces and its sides are stitched, a different commodity emerges and what was mill-made cloth ceases to ....

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....ption. 5.. We may refer to a recent decision of the Calcutta High Court in the case of Delhi C. & G. Mills Co. Ltd. v. Commercial Tax Officer[1975] 36 S.T.C. 575., where the question for consideration was whether bed sheets, bed spreads, towels and napkins cut in consumer lengths from running pieces of cotton fabrics and stitched at both ends by a mill manufacturing cotton fabrics continued to ....