TaxTMI 
TaxTMI 
2000 (8) TMI 1071
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....tor Rakhabchand, R/o. Rampurawala Building, M.G. Road, Indore, trades in business of sale and purchase of ready-made garments including neck-ties and other general goods being a registered dealer under the M.P. General Sales Tax Act, 1958 (for convenience hereinafter referred to as "Sales Tax Act"). The Assistant Sales Tax Officer, Circle VI, Indore, purporting to act under section 19(1) of the Sales Tax Act issued notice for reopening of the assessments done previously and for levying the tax at 12 per cent instead of 3 per cent on sale of neck-ties. An additional demand of Rs. 23,409 was made against M/s. Central Stores. Being aggrieved by the said act, order, notice, an appeal was preferred by M/s. Central Stores. It was pending for disp....
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....refore, the Division Bench hearing the appeal referred the question mentioned above for adjudication. 4.. Shri Kemkar, Government Advocate, appearing for the appellants submitted that the view taken by the Division Bench of this Court in the matter of Commissioner of Sales Tax v. Wearwell Dresses, Gwalior (1980) 13 VKN 361, is proper and that be given preference being the later judgment and the judgment/order passed by learned single Judge be set aside. He made reference to the meaning of words "ready-made garments". Countering that Shri G.M. Chaphekar, senior advocate, instructed by Shri C.R. Pancholia, submitted that the judgment in the matter of Wearwell Dresses, Gwalior case (1980) 13 VKN 361, is a judgment per incuriam because the pre....
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.... the matter of Commissioner of Sales Tax, M.P., Indore v. Mahajan Bros. [1963] 14 STC 808, and the judgment of the Allahabad High Court in the matter of Commissioner of Sales Tax, U.P. v. H.M. Ashiq [1979] 43 STC 281. It by considering the meaning indicated by word "garment" in common language, concluded that it is an article of dress or cloths, that is to say, cloths or articles of dress which attire or array or adorn a person. It pointed out that a garment is made of cloth whether woollen, silken, cotton or linen or any other fabric. The neck-tie is a decorative band of fabric worn round the neck under the collar by men. A neck-tie may be of any material but generally being decorative it is of silk or man-made fabric. It covers the body t....
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.... Such meaning necessarily postulates that a ready-made garment needs stitching and tailoring. A tie even if it is considered as a garment would not be a ready-made garment in the sense in which the ready-made garments are understood by the people dealing in trade and by the people generally. A dhoti or a saree would be a garment but it cannot be said to be a ready-made garment. Similarly, a scarf or muffler may or may not be a garment; but it cannot be said that it is a ready-made garment. Essentially, ready-made garment is understood to mean a garment which is made after tailoring and stitching to suit the human form but it is not made for any particular person as such but made in standard form and size. It held that it did not, therefore,....
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....ew Jersey-indicates the meaning of word "ready-made" as (i) made in advance for sale to any purchaser, rather than to order; a ready-made coat; (ii) made for immediate use; (iii) unoriginal, conventional; (iv) a manufactured object exhibited as being aesthetically satisfying; (v) something that is ready-made, especially a garment. 12.. If the meaning given by these three foremost dictionaries is understood together with its appropriate impact, one will find that the important test applicable would be the availability of the article for immediate use as it is. At the same time the conventional use of it cannot also be ignored. The way in which such an article is being used has to be given appropriate weightage. A neck-tie is exhibited in sh....