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Trambaklal Ratilal Vs. the State of Bombay - Court Judgment

LegalCrystal Citation
CourtSales Tax Tribunal STT Mumbai
Decided On
Judge
Reported in19567STC258Tribunal
AppellantTrambaklal Ratilal
RespondentThe State of Bombay
Excerpt:
.....subjected to the processes of bleaching, dyeing and starching, still remained in the category of medium cloth. the collector of sales tax disagreed with this view. he observed as follows : "the book binding cloth of the sample submitted for my inspection is no doubt derived from medium cloth which before the processing to which it has subsequently been subjected originally fell under entry 11 of schedule b. nevertheless, it no longer falls under that entry. it has gone through very considerable alteration even though the process whereby this alteration has been effected might not have been particularly complicated. the processes to which it has been subjected had as their specific aim the creation of new material for a specialised use. the conversion of ordinary medium cloth into a.....
Judgment:
1. In this case the applicants made an application to the Collector of Sales Tax under Clause (d) of Section 27 of the Bombay Sales Tax Act of 1953 in respect of a transaction of sale of a certain kind of cloth which is used for the purpose of book binding. The Assistant Collector of Sales Tax held that the cloth, which originally had belonged to the "medium variety" as mentioned in entry 11 of Schedule B to the Act and had subsequently been subjected to the processes of bleaching, dyeing and starching, still remained in the category of medium cloth. The Collector of Sales Tax disagreed with this view. He observed as follows : "The book binding cloth of the sample submitted for my inspection is no doubt derived from medium cloth which before the processing to which it has subsequently been subjected originally fell under entry 11 of Schedule B. Nevertheless, it no longer falls under that entry. It has gone through very considerable alteration even though the process whereby this alteration has been effected might not have been particularly complicated. The processes to which it has been subjected had as their specific aim the creation of new material for a specialised use. The conversion of ordinary medium cloth into a stiff, non-porous and highly moisture resisting article no longer at all capable of being put to uses to which medium cloth is ordinarily put represents in my view a fundamental alteration.

Explanation 1.-'Coarse cloth' means any cloth in which the count of warp yarn employed (excluding the border) is below 17s (whether single or folded).

Explanation 2-'Medium cloth' means any cloth in which the count of warp yarn employed (excluding the border) is 17s or finer but is less than 35s (whether single or folded).

Explanation 3.-'Cotton cloth' means any cloth in which the proportion of cotton yarn is not less than 98 per cent.

Explanation 2 above explains "medium cloth" as any cloth in which the count of warp yarn employed (excluding the border) is 17s or finer but is less than 35s (whether single or folded). It cannot be said that the count of the cloth, after the process to which it was subjected, was altered, nor can it be said that after such processing it ceased to be cloth. Even after the processing, the elements required in order that the cloth might be "medium cloth" within the meaning of entry 11 were still present. That being so, it is difficult for us to agree with the view taken by the Collector of Sales Tax. We think that however stiff or non-porous or highly moisture resisting article it may have become by its being subjected to the process of bleaching, dyeing, starching and calendering, it did not lose the essential attributes which originally brought it under entry 11, viz., its being cloth in which the count of warp yarn employed (excluding the border) is 17s or finer but is less than 35s. The view taken by the Assistant Collector of Sales Tax was correct.

3. We, accordingly, allow the application, set aside the order of the Collector of Sales Tax and restore that of the Assistant Collector of Sales Tax.


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