No. C4-102570/93/TX.                                        Office of the Board of Revenue (Taxes),

                                                                               Thiruvananthapuram, Dt. 25..09..1995.

CIRCULAR No. 24/95

Sub:   Taxes – Elastic tapes – Exemption from Sales Tax – certain clarification - regarding.

Ref:    Govt. Lr. No. 28497/B3/93/TD dated 16..01..1995

…..

It has come to the notice of the Board that certain assessing authorities are treating elastic tapes as unclassified general goods taxable at the general rate based on Government clarification issued as per G.O. (P) No. 161/89/TD dated 30..09..89.

As per entry II (ii) of the 3^rd schedule to the K.G.S.T Act, man made fabrics including that covered under heading No. 58.06 is exempted from tax. Elastic tapes wouen out of textile covered rubber thread in classified under heading No. 58.06, as per clarification issued by Government of India ministry of Finance, (Department of Revenue) as per Letter no. 51/40/86/CX-3 dt. 27..10..86. So Elastic Tapes are exempted from tax under entry II (ii) of the 3^rd schedule to the KGST Act.

Even otherwise orders issued in G.O. (P) No. 161/89/TD dated 30..09..89 is no longer valid as it stands quashed by the Hon’ble High Court along with all other such orders issued under section 59A of the KGST Act, 1963. So the orders issued under section59A of the KGST Act cannot be quoted as authority. Whenever the assessing authorities are confronted with such issues, they should decide the issue independently on the basis of the provisions of the statute, Court decisions and other authorities.

All the assessing authorities are therefore directed to bear in mind the above position and to Act accordingly.

All Deputy Commissioners should acknowledge the receipt of the Circular and obtain acknowledgement from their subordinates.

Sd/-

Secretary (Taxes) – II