2009 (7) TMI 1176

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....ry spares in which bobbin, cones and tubes were used, were given concessional rate of tax from eight per cent to four per cent was not applicable as the assessee has stated that it is a mere packaging material. Aggrieved against the same, the petitioner preferred the appeal before the Appellate Assistant Commissioner and the Appellate Assistant Commissioner in his order found that the sale made by the assessee would clearly come under the provisions of G.O.P. No. 1316/CT & RE dated October 7, 1988 and granted the exemption by allowing the appeal of the assessee. The Joint Commissioner on suo motu action negatived the contention of the Appellate Assistant Commissioner in invoking the G.O.P. No. 1316/ CT & RE, dated October 7, 1988 and ....

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.... Textile spares: (1) Rings and ring travellers, (2) Shuttle and picker, (3) Spindles, spindle tapes and spindle bolster, (4) Card cans, (5) Pirns, (6) Beams, (7) Loom frames, (8) Cots and aprons, (9) Bobbin, cones and tubes (10) Top arms, (11) Cear boxes, and (12) Card clothings Reduced from eight per cent to four per cent with effect from 7th October, 1988: No. II(1)/CTRE/144(1)/88-G.O.P. No. 1316, dated 7th October, 1988 (Gazette Entry, dated 7th March, 1993) and become taxable under item D35 of the First Schedule from 12th March, 1993 but the rate of tax was reduced from that date to four per cent by notification." According to the appellant, the item of cones sold by the appellant to the spinnin....

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.... and such paper cones could not be used for manufacturing purpose or in the alternative that cones could have been only used for packaging materials are unwarranted and unjustified. Even otherwise, in the suo motu revision, the authority has not placed any record or placed reliance on inspection or any other mode known to law to give a drastic conclusion without reading the provisions as envisaged in the G.O. The G.O. can only be interpreted in the strict sense since any sale of cones made especially to a spinning mill which is a textile industry has to be deemed to be an accessory or spare parts. The incorrect way in which the revisionary authority went to interpret the provision is not permitted in law. Hence the petitioner has made....