TaxTMI 
TaxTMI 
2021 (5) TMI 933
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....t of the respondent on 9 March, 2010 by the Special Investigation Branch. During the course of the survey, the statement of a partner of the respondent was recorded in which the nature of the business was described in the following terms : "The business of manufacture and unstitched suit, salwar, kameeze, dupatta etc. is carried out. The work of design/embroidery is carried out on kameeze, Kurta and Dupatta. The sewing process is carried out in the neck portion of the kameeze/kurta. No stitching is done on Salwar. "PECO" is done on the borders of Dupatta. The entire activity is got completed with the help of machine/manual labour. The process of "Tanka" as carried out on Kurta/Kameeze is commonly known as "Rough Stitching" i.e., "Kachchi Silai"." 5. During the course of the assessment, a similar statement on oath was made by the representatives of the dealer before the Assessing Authority, which was recorded by the Tax Assessment Officer in the following terms : "...Shri Bhushan Kumar Malhotra, authorised representative, appeared on behalf of the trader and stated on oath that the business is of unstitched dress material. The cloth is purchased in bulk. Thereafter, by....
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....exempt goods. Serial No. 21 of Schedule I is extracted below, both in its English and Hindi descriptions : Sr. No. Name and description of goods 21 Silk Fabrics; Handloom cloth of all kinds; handloom shawls & lois whether plain, printed, dyed or embroidered; Dhoties and Saris; textiles of following varieties manufactured on power-loom excluding the items described in schedule-II :- (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) fabrics made of a mixture of any two or more of the above fibres, viz. cotton, rayon, artificial silk, staple fibre or wool, or of a mixture of any one or more of the said fibres with pure silk fibre; (e) canvas cloth. The Hindi Text of the said entry is also reproduced hereunder : Schedule II provides a list of goods which are taxed at 4%, of which Entry 16 is in the following terms : Sr. No. Name and description of goods List of goods taxed at 4% 16 Bed sheets (other than unstitched bed sheets), pillow cover & other textile made ups. ....
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....with silk fabric, handloom cloth of all kinds and textiles of several varieties manufactured on power-loom excluding items which are described in the Second Schedule. This includes cotton fabric of all varieties, rayon or artificial silk fabric, woollen fabric made of a mixture of two or more of the listed fabrics and canvass cloth. It is evident from the work which is carried on by the respondent in its factory that the textile material which is purchased in bulk is cut to the size of a salwar kameez. The Court must have regard to the common parlance meaning and understanding of the expression 'textile'. Evidently, the respondent cuts the textile material which is then subjected to the work of embroidery on the neck portion. The textile material which is cut may not assume the character of a final article of apparel which can be worn by the consumer because the final work of stitching is not carried out by the respondent. This is done to ensure that the ultimate consumer may get the salwar kameez stitched to their specifications and dimensions. What is sold is an unstitched 'suit' and not textile fabric. The important point to note is that as a result of the work which is carried ....
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....neral entry "other textile made ups" must receive a meaning and connotation bearing in mind the preceding items of Entry 16. Hence, it is not possible to accept the view of the first appellate authority that the product falls within the purview of Entry 16 of Schedule II. 15. In view of the above discussion, the product would fall for classification under Serial 1 of Schedule V which is a residuary entry which covers all goods except those which are mentioned and described in Schedules I, II, III and IV. 16. The High Court declined to exercise its jurisdiction in the revision which was filed by the Department. The High Court was of the view that the factual findings of the Tribunal did not warrant interference. The High Court has manifestly erred in ignoring the plain meaning of the entries in the Schedules to the UP VAT Act, 2008 which have been discussed earlier in the course of this judgment. 17. For the above reasons, we allow the appeal and set aside the impugned judgment and order of the Single Judge of the Allahabad High Court dated 11 September, 2019. For the reasons which we have indicated, we are also of the view that the judgment of the Tribunal a....