Y N ENTERPRISES Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) HEARD the learned counsel appearing for the petitioner and the learned Government Advocate appearing for the respondent.

(2.) IT is stated that the petitioner firm is a dealer in Handwoven Woollen druggets which are sold to various dealers in other States. The druggets are of inferior quality and they are used in cold regions like Delhi, Jammu and Kashmir as absorbents of moisture on the floors of the building during the winter season. Inferior quality of raw wool fibre is the basic raw material for the manufacture of druggets. The raw material consisting of woolen fibres is first mixed thoroughly and thereafter, carded, which process results in the laying of fibres in a combed condition. The combed fibres are then twisted and threaded into woollen ropes. However, the fibres cannot be regarded as woollen yarn as it has very little tensile strength and they cannot withstand the strain of weaving. Thereafter, the woollen ropes are knotted on the warp cotton threads through handlooms. The final product is called handloom woollen druggets. The selling price is only Rs.4/- per sq.ft. All the druggets manufactured are sent to dealers outside the State and the inter-state sales was exempted for many years for the reason that handwooven druggets are used by poor peasants as mattresses in cold areas to absorb moisture on floors. Being an exempted item, the respondent did not issue any orders of assessment and it was contemplated that the exemption was allowed, classifying the handwooven druggets, as an exempted commodity as per the Third Schedule of the Tamilnadu General Sales Tax Act (Entry 2 of Part B of Third Schedule).

(3.) THE learned counsel appearing on behalf of the respondent has no objection for this Court passing such an order.