SILVER CHEM INDUSTRIES Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THIS is an appeal filed against the order of the Board of revenue (Commercial Taxes) dated 25th November, 197 5. The assessee claimed exemption in relation to a turnover of Rs. 19, 872. 11 relating to sales of "damping hose cloth" on the ground that it is textiles. The Appellate Assistant Commissioner allowed this claim and the Board of Revenue examined the order of the Appellate assistant Commissioner on suo motu revision. It was considered by the Board that the order of the Appellate Assistant Commissioner was wrong and required modification. The assessee was heard and the Board held : "the product, damping hose cloth, as it comes out of the factory, is in the shape of a hose, of different lengths. It is used for damping rollers in offset printing machines. It is a finished product. It is not called as textile in ordinary or popular sense and is not commonly understood as textile. Further, the dealers themselves have collected tax on a turnover of Rs. 17, 432. 72 treating it as liable to tax at multi-point. In view of this fact and the other circumstances, the contentions (of the assessee)have no force. " *

(2.) THE result was that the order of the Appellate Assistant commissioner was modified and the turnover was taken to be assessable. It is against this order of the Board, the assessee has filed the present appeal. THE exemption is claimed under item 4 of the Third schedule to the Tamil Nadu General Sales Tax Act, 1959. THE said entry ran as follows : "all varieties of textiles (other than durries, carpets, druggets and pure silk cloth) made wholly or party of cotton, staple fibre, rayon, artificial silk or wool including handkerchiefs, towels, napkins, dusters, cotton velvets and velveteen, tapes, niwars and laces and hosiery cloth in lengths. " *