TRAMBAKLAL RATILAL Vs. STATE OF BOMBAY

JUDGEMENT

(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.

(2.) ENTRY 11 in Schedule B to the Act reads as follows :

(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.