1991 (7) TMI 360

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....tings were covered by item 19 of the First Schedule to the Central Excises and Salt Act, 1944 and according to section 14(iia) of the Central Sales Tax Act, 1956, they could not be brought to tax under the Tamil Nadu General Sales Tax Act. The Tribunal after verification of the record held, keeping in view the process of manufacture of the rubber beltings, that they were to be treated as cotton fabrics falling under item 19 of the Central Excise Tariff and in the absence of the goods being provided for taxation under the Second Schedule to the Tamil Nadu General Sales Tax Act, they were declared to be not taxable under the Tamil Nadu General Sales Tax Act. On recording these findings, the Tribunal granted relief to the respondent-assessee o....

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....ral Excise Tariff found that the products of the assessee were essentially cotton fabrics covered by item 19 of the Central Excise Tariff and were consequently declared goods falling under section 14(iia) of the Central Sales Tax Act. Under section 15 of the Central Sales Tax Act, 1956, declared goods falling under section 14 of the Central Sales Tax Act cannot be taxed at more than one stage and at rate exceeding the prescribed rate. Cotton fabrics as defined by tariff item 19 of the Central Excise Tariff are the declared goods both for the purposes of the Central Sales Tax Act, 1956 and for the purposes of the Tamil Nadu General Sales Tax Act. The Tribunal, after examination of the samples of the product, held that the belt was made of co....

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.... adopted may be the warp and woof pattern, as is generally the case in most of the textiles, or it may be any other process or technique. What is necessary is no more than weaving of yarn and weaving would mean binding or putting together by some process so as to form a fabric. Moreover a textile need not be of any particular size, strength or weight. It may be bleached or dyed. The use to which it may be put is also immaterial and does not bear on its character as a textile. It can be used even for industrial purposes." Thus it would be seen that the mere use for industrial purposes would not detract the nature of the commodity which, as found by the Tribunal on the basis of the examination of the sample and the manner of its manufactur....