TaxTMI 
TaxTMI 
2007 (10) TMI 577
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....ording to the claim of the opposite party/dealer (hereinafter referred to as "dealer") PVC sheets is a textile and accordingly exempted under the notification pertaining to textile. It is claimed that in the PVC sheets, the base material is cotton fabric on which PVC rexine, etc., have been coated. The case of the Revenue is that PVC fabric is specifically excluded from textile under the Notification No. ST-II-3714/X-6(1)/ 85-U.P. Act 15/48-Order 85, dated June 5, 1985 and, therefore, it is not exempted. The assessing authority levied tax on PVC sheets as an unclassified item. The first appellate authority accepted the plea of the dealer and allowed the exemption. The Commissioner of Trade Tax filed appeals before the Tribunal. The Tribunal....
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.... cannot be treated as textile under the Notification No. ST-II-3714/X-6(1)/85-U.P. Act 15/48-Order-85, dated June 5, 1985. He submitted that it is open to the Legislature to exclude any item from any goods by fiction. He submitted that in the various cases this court and other High Courts have treated PVC fabric as cotton fabric and textile and, therefore, it appears that in the Notification No. ST-II-3714/X-6(1)/85-U.P. Act 15/48-Order-85, dated June 5, 1985 PVC fabric has been specifically excluded from textile. This shows the intent of the Legislature to exclude PVC fabric from the textile. In support of his contention he relied upon the decision of this court in the case of Gaurav Trades, Gorakhpur v. Commissioner of Trade Tax, U.P. Lu....
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....ed January 31, 1985: AMENDMENTS.-In the Schedule to the aforesaid notification: (1) for the existing entries in column 2 against serial numbers 7, 10, 43, and 53, the following entries shall respectively be substituted, namely: 53.. Textiles of the following varieties manufactured on powerloom, excluding durries, carpets, druggets, hosiery goods, readymade garments, hessian or jute cloth and cotton, rayon or nylon tyre cord fabrics, tyre cord or tyre cord warp sheets, PVC/HDPE fabrics and cotton beltings, but including the goods specified in the annexure hereunder: (a) cotton fabrics of all varieties; (b) rayon or artificial silk fabrics, including staple fibre fabrics of all varieties; (c) Woollen fabrics of all varieties; (d....
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....ad exempted the manufactured PVC fabric (cotton coated fabric) in the case of the dealer itself Tribunal is not justified in allowing the exemption. Though the Tribunal held that PVC fabric has been specifically excluded from textile and, therefore, it cannot be exempted as textile. In the case of dealer itself, Commissioner, Sales Tax, U.P., Lucknow v. Laxmi Leather Cloth Industries Pvt. Ltd., Noida reported in [2008] 11 VST 79 (All); [2006] 29 NTN 407, the leather cloth manufactured by the dealer has been held to be textile in view of the Notification No. ST-II-8058/XII(V)-78-U.P. Act-XV-48-Order, dated November 29, 1980 relying upon the various decisions of the apex court and this court. There is no doubt that leather cloth, which is PV....
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....e legislative intention is not clear." The principle of strict interpretation of taxing statutes was being enunciated by Rowaltt, J. in his classic statement vide Cape Brady Syndicate v. Inland Revenue Commissioners [1921] 1 KB 64 held as follows: "In a taxing statute one has to look merely at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied. Once can only look fairly at the language used." In the case of State of Kerala v. Vattukalam Chemicals Industries reported in [2001] 124 STC 233; [2001] 7 JT 144 (SC), the apex court held that the primary object is to tax and exemption notification is to be construed st....