STATE OF KERALA vs ATTESEE (AGRO INDUSTRIAl4L, TRADING CORPORATION)

The Supreme Court held that Section 9 and Third Schedule item 7 of the Kerala General Sales Tax Act, 1963, grants exemption from sales tax to 'cotton fabrics' as defined in the Central Excises and Salt Act, 1944. The Court ruled that the definition of 'cotton fabrics' in the 1944 Act, as amended in 1969, should be considered for exemption purposes, rejecting the State's argument that only the original definition applied. The Court concluded that the 1963 Act incorporates the definitions by reference, allowing for the amended definition to apply, thereby upholding the exemption for PVC cloth manufactured by the respondent-assessee.