1980 (7) TMI 104

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....ir   [Order per : Balakrishna Eradi, C.J.] - The short question that arises in this case is whether mill-made handkerchiefs are cotton fabrics falling within the scope of entry No. 19 of the First Schedule in the Central Excises and Salt Act sale of which be exempt from the levy of sales tax under the Kerala General Sales Tax Act by virtue of the exemption conferred by Item 7 of the Thi....

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....er artificial plastic materials but does not include any such fabric if it contains- (i) 40 per cent or more by weight of wool; (ii) 40 per cent or more by weight of silk; (iii) 60 per cent or more by weight of rayon or artificial silk; or (iv) 50 per cent or more by weight of jute (including Bimlipatam jute or mesta fibre) : Provided that in the case of embroidery in the piece, in ....

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....fs are cotton fabrics as defined in the Central Excises and Salt Act and upheld the claim put forward by the assessee that the turnover of handkerchiefs is exempt from levy of sales tax. The State has preferred this revision petition challenging the correctness of the said view. 3. The specific plea put forward by the assessee before the assessing authority as well as before the Appellate Assis....

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....lls. It is not in dispute that the kerchiefs have been manufactured wholly out of cotton. The mere fact that as part of the process of manufacture the edges of the cloth have been stitched will not in any way affect its character as a cotton fabric. In fact such process of stitching is essentially involved in the manufacture of several of the items enumerated in the inclusive portion of the defini....