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No.Sr.DC(R&A)/ADM-14/2006/Misc(84)/Noti/Adm-3
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Trade Cir.No.-
17 T of 2007 |
Mumbai
Dt :20.02.07 |
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Exemption from tax for
Paithani sarees produced on handloom. |
Gentlemen/Sir/Madam,
Some queries have been received regarding the
proper classification of Paithani
sarees. In this context, it may be pointed out that
Paithani sarees are
handloom fabrics woven from silk. They stand covered by Chapter 50 of Central
Excise Tariff. Fabrics including sarees covered
under that chapter are within the purview of the Additional Duty of
Excise (Goods of Special Importance) Act, 1957 and
accordingly, stand exempted from sales tax. This would remain the position even
if zari is used in the production of the
Paithani sarees.
Whatever has been said above, would apply with equal force to
Yeola sarees and
sarees woven on powerlooms.
As the Yeola sarees and
Paithani sarees are
fabrics liable for Additional Duty of Excise, they automatically stand exempted
from levy of sales tax. It may be added that the applicable rate of Additional
Duty of Excise for these products is Nil. Nevertheless the exemption is
independent of the rate of duty. It is, therefore, not necessary to
specifically exempt these products from levy of tax under the Maharashtra Value
Added Tax Act although an exemption was provided for under the
B.S.T.Act, 1959. The absence of any specific
exemption under the MVAT Act makes no difference to the non-taxability of these
products as long as they are covered under the ADE (GSI) Act, 1957.
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This circular cannot be made use of for legal
interpretation of provisions of law, as it is clarificatory in nature. If any
member of the trade has any doubt, he may refer the matter to this office for
further clarification.
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You are requested to bring the contents of this
circular to the notice of all the members of your association.
Yours faithfully,
(B.C.KHATUA.)
Commissioner of Sales Tax
Maharashtra State, Mumbai. |
