TaxTMI 
TaxTMI 
1997 (1) TMI 493
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....re that the petitioner, M/s. Ruchi Fabrics Ltd., is a company registered under the Companies Act, 1956 with its registered office at 32-33-34, Sector D-2, Industrial Area, Sanwar Road, Indore. The petitioner carries on the business of manufacture and sale of woven fabrics of cotton yarn which are not subjected to any process. All varieties of cloth were tax-free under entry 6, Schedule I of the Act. Entry 6 reads as under: "6. All varieties of cloth manufactured in mills or on powerlooms or handlooms including processed cloth." This entry was substituted by notification dated September 20, 1990 which reads as under: "6(i) Cotton fabrics covered under heading numbers 52.05, 52.06, 52.07, 52.08, 52.09, 52.10, 52.11, 52.12, 58.01, 58.....
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....in respect of any goods, by notification, amend Schedule I so as to include therein any goods not already specified or may relax or omit any of the conditions and exceptions set out in the corresponding entry in the third column thereof." Section 10 lays down that no tax shall be payable on the sales or purchases of the goods specified in the second column of Schedule I subject to the conditions and exceptions, if any, set out in the corresponding entry in the third column thereof. Sub-section (2) lays down that the State Government may, in respect of any goods, by notification, amend Schedule I so as to include therein any goods not already specified or may relax or omit any of the conditions and exceptions set out in the corresponding ....
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.... or rescind any notifications, orders, rules or bylaws so issued. Therefore, when the State Government has been given a power to include certain entries in Schedule I, then such power will include in it the power to exclude certain items also. Therefore, the contention raised by the learned counsel is not correct. 5.. In this connection reference may be made to the case of Lahu Udyog Karmchari Co-operative Housing Society Ltd. v. State of M.P. [1974] MPLJ 887. In this case, the question was regarding interpretation of section 71 of the M.P. Town Improvement Trust Act, 1961 and in that context, their Lordships observed as under: "Though there is no specific provision in the M.P. Town Improvement Trust Act as in section 48, Land Acquisi....
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....t section 21 of the General Clauses Act embodies a rule of construction, the nature and extent of the application of which must inevitably be governed by the relevant provisions of the statute which confers the power to issue the notification. The power to cancel the notification can be easily conceded to the competent authority and so also the power to modify or vary it be likewise conceded; but the said power must inevitably be exercised within the limits prescribed by the provisions conferring the said power. 8.. In the present case, under sub-section (2) of section 10 of the Act power has been given to the State Government to amend the Schedule, that also includes the power to exclude the items in the Schedule. Simply because a Sched....