LexTHE COMMISSIONER, COMMERCIAL TAX, U.P., LUCKNOW versus S/S RUJHAN STUDIO
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A B C D E F G H 511 [2021] 4 S.C.R. 511 511 THE COMMISSIONER, COMMERCIAL TAX, U.P., LUCKNOW v. S/S RUJHAN STUDIO (Civil Appeal No 793 of 2021) MARCH 02, 2021 [DR. DHANANJAYA Y CHANDRACHUD AND M. R. SHAH, JJ.] Uttar Pradesh Value Added Tax Act, 2008: Schedule I Entry 21 – Classification of unstitched suits – Assessee respondent engaged in selling dress material/unstitched suits for women – It purchases textile material in bulk which is cut to the length of a salwar kameez suit for women – The work of sewing, design and embroidery is carried out on the neck portion of the kameez or kurta and the dupatta is subjected to ‘peco’ work and then it is sold as an unstitched suit – As a result of the work which is carried out by the respondent in the factory, the material ceases to be textile within the meaning of Entry 21 and assumes the character of an article which has a distinct meaning and description – The product can certainly not be called ‘a textile made up’ under Entry 16 of Schedule II as it is used in conjunction with the expression “bedsheets and pillow covers” – The expression “other textile made ups” must be read ejusdem generis with the articles which precede it and should hence comprehend goods of the same class and description – Hence, the product would not fall within the purview of Entry 16 of Schedule II – The product would fall for classification under Serial 1 of Schedule V which is a residuary entry which covers all goods except those which are mentioned and described in Schedules I, II, III and IV. Disposing of the appeals, the Court HELD : 1. The definition of the expression “manufacture” is in broad and comprehensive terms. The definition, inter alia, includes altering, ornamenting, finishing or otherwise processing, treating or adapting any goods. The respondent purchases textile material in bulk which is then cut to the length of a salwar kameez suit for women. The work of sewing, design and embroidery is A B C D E F G H 512 SUPREME COURT REPORTS [2021] 4 S.C.R. carried out on the neck portion of the kameez or kurta. No stitching is done on the salwar. The dupatta is subjected to ‘peco’ work. Entry 21 deals with silk fabric, handloom cloth of all kinds and textiles of several varieties manufactured on power loom excluding items which are described in the Second Schedule. This includes cotton fabric of all varieties, rayon or artificial silk fabric, woolen fabric made of a mixture of two or more of the listed fabrics and canvass cloth. It is evident from the work which is carried on by the respondent in its factory that the textile material which is purchased in bulk is cut to the size of a salwar kameez. The court must have regard to the common parlance meaning and understanding of the expression ‘textile’. Evidently, the respondent cuts the textile material which is then subjected to the work of embroidery on the neck portion. The textile material which is cut may not assume the character of a final article of apparel which can be worn by the consumer because the final work of stitching is not carried out by the respondent. This is done to ensure that the ultimate consumer may get the salwar kameez stitched to their specifications and dimensions. What is sold is an unstitched ‘suit’ and not textile fabric. The important point to note is that as a result of the work which is carried out by the respondent in the factory, the material ceases to be textile within the meaning of Entry 21 and assumes the character of an article which has a distinct meaning and description. [Paras 11, 12][517-G-H; 518-A-F] 2. Entry 16 of Schedule II refers to bedsheets (other than unstitched bedsheets), pillow covers and “other textile made ups”. The appellant submits that the expression “other textile made ups” is not a stand-alone entry, but occurs in the same entry together with bedsheets (other than unstitched bedsheets) and pillow covers. Hence, the expression “other textile made ups” should be read in conjunction with the other goods which are specified in Entry 16. A textile made up is an article which is manufactured or stitched from any type of cloth. In the instant case, going by the case of the respondent, the product is unstitched because the ultimate work of stitching the salwar kameez is yet to be performed and is not carried out by the A B C D E F G H 513 respondent. In the circumstances, the product can certainly not be called as a textile made up. Secondly, the entry “other textile made ups” is not a
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