NOVELTY DRESS MANUFACTURING COMPANY Vs. KARNATAKA APPELLATE TRIBUNAL

JUDGEMENT

(1.) THESE two revision petitions filed under section 23 (1) of the Karnataka Sales Tax Act, 1957 (in short "the Act"), are directed against the common order dated January 5, 1996 passed by the tribunal in relation to the assessment periods 1990-91 and 1991-92. The Tribunal has affirmed the views taken by the authorities under the Act that the cotton rags (chindies) were liable to tax at the rate of 7 per cent on its turnover under section 5 (1) of the Act as unspecified goods.

(2.) THE petitioner is engaged in the business of readymade garments. During the assessment years in question, its sale turnover of chindies was taken as Rs. 50,000 for each of the years by way of best judgment assessment since the petitioner had failed to show any sale on this count.

(3.) THE learned counsel for the petitioner has assailed the order of the Tribunal on the basis of an unreported judgment of a learned single Judge passed in the case of Ashok Exports v. A. C. C. T. (W. P. No. 35953 of 1992 dated August 3, 1995) wherein on the basis of a circular issued by the commissioner dated May 30, 1988 it is held that the said cotton rags (chindies) would be exempt from the levy of tax under the Act being Cotton fabrics. The learned single Judge while so holding has also noticed that no material placed before him to show that the said clarification had been withdrawn before the assessment.