1996 (2) TMI 502

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....59 (Tamil Nadu Act 1 of 1959), the Governor of Tamil Nadu hereby makes a reduction in rate from five per cent to three per cent in respect of the tax payable by any dealer on the sale of hosiery goods, other than those made wholly or partly of wool." It is claimed that the members of the petitioners' association are trading in hosiery goods commonly known as "Cashmilon" hosiery goods. It is not in dispute that Cashmilon is not made wholly or partly of wool. The product dealt are knitted garments like socks, tops, sweaters, scarves, mufflers, etc. The relevant entries which require consideration are as follows: PartD/First Schedule: S.No. 14 Hosiery goods made wholly or partly of wool. At the point of first sale in the State. 8 per cen....

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....t exceed Rs. 4 in single piece. By an amendment to the notification that exemption was not made available to hosiery products of all kinds. The dealers of "banians" and "chaddies" which are admittedly under-garments claimed violation of article 14 in making a hostile distinction between the garments and hosiery products. While upholding that there can be a reasonable classification, the Rajasthan High Court held as follows: ".......The State Government could have very well thought that hosiery products are used by people who are comparatively better off than those who do not use them or it may be that the distinction was based on the process of manufacture. Hosiery products are knitted articles. This will be clear when we refer to some sta....

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....h were meant to cover the feet and the legs. This term has, however, now come to acquire a wider meaning and means knitwear (Webster's Dictionary). Topas and mufflers are knitted garments and, as such, would fall in the category of hosiery goods. In [1986] 61 STC 25 (Mad.) [P. Kanniappan (died) v. State of Tamil Nadu] a Division Bench of the Madras High Court held that the expression "hosiery" has now come to acquire a wider meaning to cover all knitwears and in that sense gloves made of hosiery cloth can be treated as hosiery. It was held: "According to the learned counsel for the petitioners, normally the word 'hosiery' is a term which could be used with reference to socks which are used to cover the feet or the legs and therefore glove....