TaxTMI 
TaxTMI 
2012 (9) TMI 891
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....al is correct in coming to the conclusion that what was sold by the assessee is only printed labels which is exempted from tax as per column 11, Part A of the Third Schedule and not the printed materials?" The assessee is a dealer in cloth tapes and printed labels. An assessment order was made on March 10, 1999, whereby, the sales effected by the assessee in respect of woven cloth tapes and ribbon tapes (printed labels) were brought to tax. Aggrieved against the said assessment order, the assessee filed an appeal before the first appellate authority, viz., the Appellate Assistant Commissioner by contending that what was sold by them is exempted from tax as the same would fall under entry 11 of Part A of the Third Schedule to the Tamil Nadu....
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....uld reveal that the narrow woven fabrics other than the goods under heading 5807 alone could be considered under head 5806. Therefore, according to the learned Government Advocate appearing for the Revenue, if the heading 5807 is taken into consideration, it shows that labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered are to be dealt with under the said heading which are specifically excluded under the heading 5806. By contending so, the learned Government Advocate argued that the assessee is not entitled to claim exemption as the goods dealt with by them would not fall under entry 11, Part A of the Third Schedule. Per contra, the learned counsel appearing for the ass....
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....for the purpose of seeing as to whether the commodity sold by the assessee would fall within the classification of entry 11, one has to necessarily read the heading 5806 of the Central Excise Tariff Act. Unless the articles referred to under heading 5806 of the said Act match with the articles in entry 11, the assessee cannot seek the benefit of exemption. Entry 5806 of the Central Excise Tariff Act reads as follows: "Tariff item No. 5806 of the Central Excise Tariff of India: Narrow woven fabrics other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs)." A reading of entry 5806 shows what are the fabrics that would fall under entry 5806, viz., narrow woven fabrics, othe....
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....Central Excise, Bombay [1997] 106 STC 180 (SC) to reject the claim of the assessee. In the said case, the apex court has dealt with printed aluminium labels fixed to refrigerators, radios, air-conditioners, television sets, etc. It was observed therein that printing of the label is not incidental to its use but in the sense that it communicates to the customer about the product service and its definite purpose. The apex court has further found that the printed labels are the product of printing industry. A combined reading of the said decision along with entries 5806 and 5807 of the Central Excise Tariff Act, we have no hesitation in rejecting the case of the assessee seeking exemption under entry 11 of Part A of the Third Schedule. Furthe....