1995 (11) TMI 111

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....ax Act, 1963. They relied in this behalf upon Entry 8 of Schedule III to the said Act. Schedule III sets out the goods which are exempted from sales tax under Section 9 of the said Act. Entry 7 thereof reads thus : "Cotton fabrics, woollen fabrics and rayon or artificial silk fabrics as defined in Items Nos. 19, 21 and 22 respectively of the First Schedule to the Central Excises and Salt Act, 1944." 3.Item 22 of the First Schedule to the Central Excises and Salt Act, 1944, so far as it is relevant, read as follows : "Rayon or Artificial Silk Fabrics. - Rayon or artificial silk fabrics include all varieties of fabrics manufactured either wholly or partly from rayon or artificial silk." 4.The said strapping, according to the writ ....

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....authorities provided for in the said Act. Both the learned Single Judge and the Division Bench negatived this contention. 5.These appeals had come up earlier for hearing and the Bench of two learned Judges came to the conclusion that they should be heard by a Bench of three Judges in view of the facts that new techniques had been evolved for marking fabric out of yarn and it might be inadvisable to confine the weaving process to the wrap and woof method. 6.What has to be seen, having regard to Entry 7 of Schedule III of the said Act read with Item 22 of the First Schedule o the Central Excises and Salt Act, 1944, is whether the said strapping is a fabric, manufactured, either wholly or partly, from rayon. As afforested, the only mater....