PLASTIPACK PRIVATE LTD Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) M/s. Plastipack Private Ltd. manufacturing and selling woven fabrics known as HDPE fabrics approached the Commissioner under Section 35 of the U. P. Sales Tax Act and claimed that fabrics manufactured by them were rayon textiles within the meaning of Notification No. ST-4064/X-960 dated 25th November, 1958, and therefore, it be unconditionally exempt from payment of tax. The Commissioner did not agree as the word "textile" in common parlance, according to him, should be confined to clothing meant to cover or clean the body such as shirting, suiting, towel, etc., and furnishing used in connection with covering and decorating walls and furniture such as curtains, carpets, etc. He, further held that fabrics manufactured by the assessee were laminated fabrics, the process of which comprised of impregnation of plastic material pressed together thereby producing air and water proof fabric. And as woven textile fabrics are neither air nor water proof, the assessee was not entitled to any exemption.

(2.) Before considering the controversy it may be pointed out that in paragraph 5 of the application filed in this Court it has been claimed by the assessee that the assessee has been selling plain woven fabrics manufactured by it as well as laminated fabrics. This appears to have been the case of the assessee even before the Commissioner as is clear from the following observations made by him:

(3.) The Commissioner, however, did not record any finding whether plain woven fabrics would be covered in the entry "rayon textiles". He decided the case only of laminated fabric.