STATE OF HARYANA Vs. NANU MAL AMAR NATH

JUDGEMENT

(1.) SHORN of niceties, the blunt question for consideration in this appeal Under Clause X of the Letters Patent is the connotation of the word "carpet" as used in the Punjab General Sales Tax Act (hereinafter referred to as the Act ). The respondent-firm is a manufacturer of woollen goods, like blankets, shawls, etc. and also deals in the purchase and sale of cotton bed sheets. They are registered dealers under the Act.

(2.) ACCORDING to entry 30 of Schedule B to the Act, as applicable to the State of Haryana, an exemption has been granted for all varieties of cotton, woollen or silken textiles, but items like carpets, druggets, woollen durees and cotton floor durees have been excluded from this exemption. The relevant entry is reproduced below for facility of reference: 30. All varieties of cotton, woollen or silken textiles including rayon, artificial silk or nylon, whether manufactured by handloom or powerloom or otherwise but not including pure silk fabrics, carpets, druggets, woollen durees and cotton floor durees.

(3.) THE respondent went up in appeal before the Deputy Excise and Taxation Commissioner (Appeals), Ambala, who, while agreeing with the interpretation placed by the Assessing Authority upon the word "carpet", dismissed the appeal, vide order annexure B to the writ petition. A second appeal was carried by the assessee before the Sales Tax Tribunal, Haryana, but again without success. The commodity in question was thus determined by all the taxation authorities to be carpet on account of the reasons already noticed above.