TaxTMI 
TaxTMI 
1980 (9) TMI 267
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....e assessee: "Whether, on the facts and in the circumstances of the case, the Member, Additional Sales Tax Tribunal, was legally correct in holding that sarees when fitted with chumki and embroidery works no more continue to be mill-made fabrics and as such are taxable as 'embroidery' mentioned in serial 43 of the taxable list?" 2.. The assessee is a dealer in mill-made and handloom cloths. The r....
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....has been held: "If a saree piece, which is a cotton fabric, is subjected to the process of embroidery after its manufacture as a cotton fabric has been completed, it can no longer be called a cotton fabric as defined by entry 19 of Schedule I to the Central Excises and Salt Act, 1944, and it becomes an embroidered saree within the meaning of entry 3 of Schedule E. The process of embroidery is not....
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....[1975] 36 STC 575. We are inclined to think that reference to these authorities would not be of any assistance. There is no dispute that millmade cloths are exempt from the levy of sales tax. There is equally no dispute that chumki is an embroidery article. In case the mill-made saree is subjected to chumki work, the saree while continuing to be a saree for all practical purposes might cease to be....
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.... by the authorities including the Additional Tribunal as to the extent of embroidery work on the mill-made sarees. It has, therefore, become difficult for us to answer the question referred to us one way or the other. We would, however, indicate that there is no doubt in our mind that if the saree continues to be essentially a mill-made one with little embroidery work on it, it would not pass in t....