DELHI CLOTH AND GENERAL MILLS CO. LTD. versus STATE OF RAJASTHAN AND ORS.

DELHI CLOTH AND GENERAL MILLS CO. LTD. versus STATE OF RAJASTHAN AND ORS.

Rayon Tyre Cord Fabric is a textile fabric, falling within the definition of 'rayon fabrics' in Item 18 of the Schedule to the Rajasthan Sales Tax Act, 1954, as interpreted through commercial usage. For assessment years up to 4th March 1973, exemption from sales tax applied regardless of payment of additional excise duty; assessments for these periods are quashed.

Parties
Appellant: Delhi Cloth and General Mills Co. Ltd.; Respondents: State of Rajasthan and Ors.
Jurisdiction
India
Judgment Date
08 May 1980
Procedural Posture
Civil Appeals / Appeal by Special Leave
Outcome
Appeals allowed. Assessments quashed.
Legal Topics
Exemption From Sales Tax, Interpretation of Tax Statutes, Industrial Fabrics, Rayon Tyre Cord Fabric
Sales Tax Taxation Exemption From Sales Tax Interpretation of Tax Statutes Industrial Fabrics Rayon Tyre Cord Fabric

Case Brief

Summary, issues, holding and outcome

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Parties

Delhi Cloth and General Mills Co. Ltd.

Appellant

State of Rajasthan and Ors.

Respondents

Procedural Posture

Civil Appeals / Appeal by Special Leave

Legal Issues

  1. 1 Whether 'Rayon Tyre Cord Fabric' is covered by item 18 of the Schedule to the Rajasthan Sales Tax Act, 1954 and qualifies for exemption under the Central Sales Tax Act
  2. 2 Whether assessment and payment of excise duties under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 is a precondition for claiming exemption under the Rajasthan Sales Tax Act and Central Sales Tax Act
  3. 3 Whether Supreme Court can interfere under Article 136 of the Constitution given Section 15 of Rajasthan Sales Tax Act

Ratio Decidendi

Rayon Tyre Cord Fabric is a textile fabric, falling within the definition of 'rayon fabrics' in Item 18 of the Schedule to the Rajasthan Sales Tax Act, 1954, as interpreted through commercial usage. For assessment years up to 4th March 1973, exemption from sales tax applied regardless of payment of additional excise duty; assessments for these periods are quashed.

Court Disposition

Appeals allowed. Assessments quashed.

Orders

  • Assessments on the turnover of rayon tyre cord fabric for assessment years 1969-70, 1970-71, 1971-72, and first six months of 1972-73 are quashed.
  • No order as to costs.