TaxTMI 
TaxTMI 
1994 (2) TMI 278
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 1982-83. But tax was levied at 4 per cent on the said turnover for the year 1983-84 as if woollen carpets were multi-point goods taxable under section 5(1)(ii), and not exempted under section 9 read with item 7 mentioned earlier. A new item 100B was added to the First Schedule to the Act with effect from April 1, 1984, bringing "pile carpets" to tax at 15 per cent single point, at the point of first sale in the State, with the result, the petitioner was assessed to tax at 15 per cent in the year 1984-85 on their sale of carpets. Petitioner's appeals against these assessments for the years 1983-84 and 1984-85 were not successful before the Appellate Assistant Commissioner, but the Appellate Tribunal in second appeal, set aside the assessmen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....spite the introduction of item 100B in the First Schedule, carpets continued to be exempt as, according to counsel, they were "woollen fabrics" within the purview of item 7 of the Third Schedule to the KGST Act. Item 7 not having been amended it should prevail over item 100B of the First Schedule. Item 7 of the Third Schedule, as it stood in 1984-85, made an exemption in respect of the tax payable on woollen fabrics as defined in item No. 21 of First Schedule to the Central Excises and Salt Act, 1944 ("the Central Act", for brevity). The First Schedule to the Central Act was amended with effect from April 1, 1979, by adding a new item No. 22-G relating to floor coverings, namely carpets, carpeting and rugs. Simultaneously Explanation III wa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....orporation. This Court had stated in its decision that whether the words used in item 7 of the Third Schedule were words of reference, citation or incorporation the provisions of item 7 grew or shrank with the changes in the parent statute, namely, the Central Act. Therefore, the question of exemption under item 7 has to be adjudged with reference to the provisions of the Central Act as they stood at the relevant time, which so far as this case is concerned, is 1984-85. If during that period, carpets dealt with by the petitioner were not comprehended within item No. 21 of the First Schedule to the Central Act, petitioner cannot stake claim for any exemption for the same under the KGST Act. I have already pointed out that item No. 21 underwe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cs have been subjected to additional excise duty under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (hereinafter referred to as "the Additional Duties Act"). The contention is that additional excise duty is levied pursuant to an agreement with the State, by which the State shall not levy sales tax on goods covered by the said Act, for which the State will be compensated by payment of a share of the additional excise duty levied under the said Act. This contention has to fail for two reasons. Section 2(c) of the Additional Duties Act defines "woollen fabrics" as having the same meaning as that assigned to it in item No. 21 of the Central Act. During the year 1984-85, as pointed out by me earlier, carpets had gone o....