2019 (6) TMI 178

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....thereto was filed by the applicant, however, the assessing authority has rejected the books of accounts and the disclosed turnover and the claim of the applicant and has assessed the taxable turnover at Rs. 59,91,975/and tax Rs. 6,92,595/respectively. The only issue involved in the present revision is as to what would be the liability of tax on 'Jute Sutli' imported by the applicant from Nepal. For the assessment year 200102 the applicant has paid the tax on Jute Sutli at the rate of 4%, however, based on the notifications issued by the State Government time to time the assessing authority has treated the 'Jute Sutli' covered by the notification dated 13.9.2001 accordingly and has imposed the tax at the rate of 20%. The basis of imposition of tax at the rate of 20% was that since the Jute Sutli has been imported by the applicant from outside the territory of India therefore the same is taxable at the rate of 20%. The relevant entry No. 58 of the notification dated 13.9.2001 published in the Gazette on 15.9.2001 reads as follows : Serial Number Description of Goods Point of tax Rate of tax percentage 1 2 3 4 58 (i) Yarn of all kind....

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.... that mentioned in subitem (i) above made from jute or hemp M or I 10% The contention of the departmental representative before the Tribunal was that, that with effect from the issuance of the notification dated 7th October 2002 item 'Jute Sutli' or 'Jute Yarn' has been mentioned in the description of goods and the rate of tax on such goods was fixed at the rate of 5%. The department representative has contented before the Tribunal that prior issuance of the said notification dated 7th October 2002 the words 'Jute Sutli' or 'Jute Yarn' was missing in the previous notifications issued time to time therefore, the rate of tax fixed by the assessing authority at the rate of 20% on 'Jute Sutli' imported by the applicant from outside the territory of India was correct. The departmental representative has further submitted before the Tribunal that the first appellate authority was not justified in allowing the appeal and in accepting the submission of the dealer/ assessee by imposing the tax at the rate of 5% treating the Jute Sutli covered under the notification dated 15.1.2000. Before the Tribunal learned counsel for the dealer has sub....

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....ed by the notification dated 15.1.2000 and he further states that even assuming without admitting, if the 'Jute Sutli' is not covered under item (i) of entry 21 of notification dated 15.1.2000 then it can be covered by item (ii) of Sl. No.21 and the rate of tax cannot be more than 10%. In support of his submission learned counsel for the applicant has placed reliance of decision of this Court in the case of Commissioner of Sales Tax vs. S/s. Bharat Rope Store 2004 U.P.T.C. 1120. In the case of M/s Bharat Rope Store (Supra) the issue came up before this Court for consideration was as to whether Badh (Baan) falls either entry no.55 or entry no. 25 of the notification dated 7th September 1981. This Court has considered the meaning of word "Yarn". Word Yarn has not been defined either in the Act or Rules or in the notifications. Yarn means Sute (सूत). According to Oxford Dictionary "Yarn" means: "Any spun thread specially or kinds prepared for weaving, knitting or rope making." "Any fibre, as woollen, silk, flax, cotton, nylon etc. spun into strands for weaving, knitting or making thread." "Yarn" has been interpreted by the Supreme Court with refer....

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.... box holding a bobbin of yarn in its hollowed centre. Each trip of the shuttle is called a pick. After each pick the harness frames shift position in accordance with the predetermined pattern, producing a new shed or different combination of raised and lowered warp yarns. The filling yarn are beaten down with a weaver's reed to make a tighter weave.' (Encyclopaedia Britannica, Vol. 23, page 342, 1971 Edn.) Thus 'weaving' is the process of combining warp and weft components (respectively lengthwise and crosswise) to make a woven structure. The threads that lie lengthwise are called the warp. The other threads, which are combined with the warp and lie width wise, are called the 'weft', also known as 'woof. An individual thread from the warp of indefinite length is called an end; each individual length of weft from one edge to the other is called a pick. Consecutive picks are usually consecutive lengths of one piece of weft yam that is repeatedly folded back on itself. In all methods of weaving before a length of weft is inserted in the warp, the warp is separated, over a short length extending from the cloth already formed, into two sheets. The pr....

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....ारा घोषित सुतली की कर योग्य बिक्री रू0 933975.00 को स्वीकार किया है, परन्तु अपीलकर्ता द्व ारा घोषित सुतली बिक्री दर 4 प्रतिशत के बजाय कर निर्धारण अधिकारी ने 20 प्रतिशत की दर से कर आरोपित किया है। कर निर्धारण अधिकारी जिन विज्ञप्ति का हवाला दà....