TaxTMI 
TaxTMI 
1984 (3) TMI 363
X X X X Extracts X X X X
X X X X Extracts X X X X
....cotton fabrics"? (2) Whether or not the assessee is entitled to get exemption under Notification No. 4064/X-960(4)/58 dated 25th November, 1958? (3) Whether or not the assessee is entitled to get the exemption of interState sales under Notification No. ST-4486/X dated 14th December, 1957? So far as questions Nos. (2) and (3) were concerned the Commissioner, Sales Tax, held that the patta manufactured by the assessee was covered by the notification dated 1st December, 1973 "beltings of all kinds" and could not be regarded as "cotton fabrics of all varieties" and as such the dealer was not entitled to any exemption. Against that the respondent went up in appeal before the Sales Tax Tribunal. The Tribunal held that the product manufactur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....itts & Spencer (Asia) Ltd. v. State of Haryana [1978] 42 STC 433 (SC), the Supreme Court had occasion to consider as to whether "dryer felts" made out of cotton or woollen yarn by process of weaving and commonly used as absorbents of moisture in paper manufacturing units was covered by the word "textiles" or not. Dealing with the question of textiles the Supreme Court remarked as follows: "Now, the word 'textiles' is not defined in the Act, but it is well-settled as a result of several decisions of this Court, of which we may mention only a few, namely, Ramavatar Budhaiprasad v. Assistant Sales Tax Officer, Akola [1961] 12 STC 286 (SC); Motipur Zamindary Co. Ltd, v. State of Bihar [1962] 13 STC I (SC) and State of West Bengal v. Washi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bleached or dyed, according to the requirement of the purchaser. The use to which it may be put is also immaterial and does not bear in its character as a textile. It may be used for making wearing apparel, or it may be used as a covering or bedsheet or it may be used as tapestry or upholstery or as duster for cleaning or as towel for drying the body. A textile may have diverse uses and it is not the use which determines its character as textile. It is, therefore, no argument against the assessee that 'dryer felts' are used only as absorbents of moisture in the process of manufacture in a paper manufacturing unit. That cannot militate against 'dryer felts' falling within the category of 'textiles', if otherwise they satisfy the description ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat cotton beltings are covered by all varieties of textiles in item 4 of the Third Schedule to the Tamil Nadu General Sales Tax Act which is in pari materia with the notification issued under the U.P. Sales Tax Act. In view of the finding recorded by the Tribunal and also in view of the above decisions, it is clear that the patta manufactured by the petitioner is covered by "cotton fabrics of all varieties". The next question that arises for consideration is that the patta, which is covered by "cotton fabrics of all varieties" is taxable under the notification dated 1st December, 1973, viz., "beltings of all kinds". In Commissioner of Sales Tax v. Dayal Singh Kulfiwala, Lucknow [1982] 49 STC 295; 1980 UPTC 350 a question arose whethe....