TaxTMI 
TaxTMI 
1999 (9) TMI 936
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....765-67 of 1998 respectively. Both the set of writ petitions were disposed of by the single Judge by one order as the questions involved in all these writ petitions were similar. We also propose to dispose of them by one order. 2.. Some of the writ petitioners have not chosen to file the appeals. There were 33 writ petitioners, out of whom only 17 have filed the appeals. 3.. The appellants are either the manufacturers or traders of "narrow woven fabrics". Their place of manufacture or business is situated in the State of Karnataka. As per averments made in the writ petition, the narrow woven fabrics are manufactured on looms known in textile parlance as shuttle or shuttleless looms. The cloth which comes out of such looms is in ....
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....mption of the tax on the narrow woven fabrics manufactured and sold by the petitioners till March 15, 1995. Additional Duties of Excise (Goods of Special Importance) Act, 1957 was amended by Finance Act, 1995 and entry 58.06 was worded as under: "Narrow woven fabrics (other than tulles, other net fabrics and goods of heading Nos. 58.07, 58.08, 58.09 and 58.10)." The expression narrow woven fabrics in entry 58.06 was explained as under: "For the purposes of heading No. 58.06, the expression 'narrow woven fabrics' means: (a) Woven fabrics of a width not exceeding 30 cm., whether woven as such or cut from wider pieces, provided with selvedges (woven, gummed or otherwise made) on both edges; (b) Tubular woven fabric....
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.... that after the amendment of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 with effect from March 16, 1995, the items manufactured by the appellants-writ petitioners would fall under entry No. 58.07 and therefore liable to pay the sales tax. 6.. Intelligence Wing of the Department of Sales Tax of Karnataka visited number of premises. Some of the manufacturers-traders were required to produce their books of accounts. Manufacturers/traders being of opinion that items duly sold by them are exempt from sales tax, did not produce the books of accounts. The concerned officers who visited the premises of the appellants, issued notices under section 29(1)(e) for levy of penalty on failure to keep true and complete accou....
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....07 or they would be woven fabrics of width not exceeding 30 cms? Whether they were woven or cut from wider pieces provided with selvedges (woven, gummed or otherwise made) on both edges as given in entry 58.06? 12.. Learned single judge proceeded to decide the controversy between the parties on the question of law without taking on record the factual aspects which could only be determined by the assessing authorities. In normal course, the appellants/petitioners should have submitted to the jurisdiction of assessing authorities to raise their objections. The assessing authorities, on the raising of the objections by the appellants/petitioners, would have framed assessment in accordance with law and the appellants/ petitioners thereaft....
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....sing authority. We say so because earlier the manufacturers-traders of the narrow woven fabrics were exempt from payment of sales tax. They were brought within the purview of KST Act because of the amendment of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 by the amending Finance Act of 1995. According to the authorities, they were brought within the purview of KST Act with effect from March 16, 1995. The manufacturers/traders under the circumstances, could legitimately think that their item fell under entry 58.06 and not 58.07 and may not have produced their books of accounts before the intelligence authorities. Similarly, it cannot be said they had fraudulently avoided to pay the sales tax. Notices under secti....