DIAMOND INDUSTRIES Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) UNDER Section 44(1) of the M. P. General Sales Tax Act, the following question has been referred for opinion of this Court: -

(2.) THE assessee deals in cloth and stiff collar lining. The period of assessment is 1 -7 -1978 to 30 -6 -1979. The assessee claims that stiff collar linings are 'cloth' and exempted from tax. The assessing authority held it not to be 'cloth', but liable to tax as stiff collar lining under the residuary entry. The opinion of the assessing authority has been upheld by the Board of Revenue.

(3.) THE term 'cloth' is not defined in the Act. It shall have to assume the same meaning as is assigned to it in common parlance. In view of the phraseology used by the Legislature in the Entry, a little extended meaning is given to cloth. It would include processed cloth which might or might not have been capable of being included in the term 'cloth'.