JUDGMENT R. V. RAVEENDRAN, J. - The appellants in these two appeals are registered dealers under the Karnataka Sales Tax Act, 1957 (for short, "the KST Act"). They purchase bedsheets, bedspreads, napkins and terry towels, all in lengths, from manufacturers and/or their agents in other States and sell them locally at Bangalore to retail dealers and non-dealer customers. Facts in S.T.A. No. 35 of 2000 : The appellant had declared total sales turnover of Rs. 37,63,546.40 for the assessment period 1998-99 and claimed exemption from sales tax in regard to the entire sales turnover on the ground that textiles were exempt from tax under entry No. 3 (old entry No. 8A) of the Fifth Schedule to the Act. The assessing authority made an order of assessment dated December 2, 1999. He found that the assessee had purchased terry towels (turkey towels) of the total value of Rs. 4,95,752, during the assessment period. He determined the sales turnover relating to terry towels as Rs. 5,43,345 by adding 9.6 per cent as gross profits to the purchase value. He held that the sales turnover relating to terry towels was not exempted from tax and subjected the sales turnover relating to terry towels to tax at 2 per cent under entry 7A of Part T of the Second Schedule to the KST Act. The appellant filed an appeal before the Joint Commissioner of Commercial Taxes (Appeals), Bangalore City Division-III. The appellate authority held that the goods in question would fall under the heading No. 52.07 or heading No. 58.02 in the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (for short, "the ADE Act") and therefore the goods were exempt from tax under section 8 read with entry 3 (old entry No. 8A) of the Fifth Schedule to the KST Act. He, therefore, allowed the appeal by order dated April 28, 2000 and deleted the taxable turnover determined as Rs. 5,43,345. The Additional Commissioner of Commercial Taxes, Zone-I, Bangalore, in exercise of his suo motu revisional power, passed an order dated April 28, 2000 setting aside the order of the appellate authority and restored the order of the assessing authority. Facts in S.T.A. No. 36 of 2000 : The appellant in S.T.A. No. 36 of 2000 had declared a total turnover of Rs. 45,66,590.70 and taxable turnover as Nil, in regard to assessment period 1997-98. Facts in S.T.A. No. 36 of 2000 : The appellant in S.T.A. No. 36 of 2000 had declared a total turnover of Rs. 45,66,590.70 and taxable turnover as Nil, in regard to assessment period 1997-98. The assessing authority passed an order of assessment on November 2, 1999. He found that the assessee had purchased bedsheets and bedspreads of the value of Rs. 16,31,084 and terry towels and napkins of the value of Rs. 5,32,760 in all Rs. 21,63,844. He held that turnover relating to bedsheets/bedspreads/terry towels/napkins were not exempted from tax as they were not "textiles" within the meaning of entry No. 8A (corresponding to new entry No. 3, with effect from April 1, 1998) of the Fifth Schedule to the KST Act. By adding a profit margin to the said purchase value, the assessing authority subjected a turnover of Rs. 23,02,382 to tax at 2 per cent under entry No. 7A of Part T of the Second Schedule to the KST Act. The appellant filed an appeal before the Joint Commissioner of Commercial Taxes (Appeals), Bangalore City Division-III. The appellate authority allowed the appeal by order dated April 29, 2000 and deleted the levy of tax on the said turnover of Rs. 23,02,832. He held that the goods in question fell under the heading No. 52.07 or 52.08 or 52.09 or 58.02 of the First Schedule to the ADE Act and therefore the goods were exempt from tax under section 8 read with entry No. 8A (new entry No. 3) of the Fifth Schedule to the Act. The revisional authority however reversed the said order by order dated April 29, 2000 passed in exercise of suo motu power of revision and restored the order passed by the assessing authority. Common question of law and consideration thereof : Feeling aggrieved, the respective assessees have filed these two appeals, challenging the orders of the revisional authority. The revisional authority however reversed the said order by order dated April 29, 2000 passed in exercise of suo motu power of revision and restored the order passed by the assessing authority. Common question of law and consideration thereof : Feeling aggrieved, the respective assessees have filed these two appeals, challenging the orders of the revisional authority. The following question of law arise for consideration in both these appeals : Whether bedsheets, bedspreads, terry towels and napkins are exempt from tax under entry No. 3 (old entry No. 8A) of the Fifth Schedule to the KST Act or whether they are exigible to tax under entry 7A of Part-T of the Second Schedule to the KST Act ?" Section 8 of the KST Act provides that no tax shall be payable under the Act on the sale of goods specified in the Fifth Schedule subject to the conditions and exceptions, if any, set out therein. Old entry No. 8A (corresponding to entry No. 3 from April 1, 1998 to March 31, 2002) of the Fifth Schedule to the KST Act read thus : "All varieties of textiles, namely, cotton, woollen or artificial silk including rayon or nylon, whether manufactured in mills, power looms or in handlooms and hosiery cloth in lengths (produced or manufactured in India) as described from time to time in column (2) of the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957." On the other hand "Textile and fabrics, but excluding such textiles and fabrics as are covered, described or specified elsewhere in any of the Schedules", are subjected to tax under entry 7A of Part T of the Second Schedule to the KST Act. Thus, if any textiles fell under entry No. 8A (later entry No. 3) of the Fifth Schedule, it got excluded from entry No. 7A of Part T of the Second Schedule. If any textiles or fabrics did not fall under either entry No. 8A (later entry No. 3) of the Fifth Schedule or any other entry in any Schedule, then, it fell under entry No. 7A of Part T of the Second Schedule. [Note : Entry No. 3 (old entry No. 8A) of the Fifth Schedule has been omitted from the Fifth Schedule, with effect from April 1, 2002. [Note : Entry No. 3 (old entry No. 8A) of the Fifth Schedule has been omitted from the Fifth Schedule, with effect from April 1, 2002. Simultaneously by a notification dated March 30, 2002 issued under section 8A of the KST Act, the goods earlier described in entry 3 of the Fifth Schedule, have been exempted from tax with effect from April 1, 2002]. Entry No. 8A (later entry No. 3) of the Fifth Schedule exempts the following textiles from payment of tax under the KST Act : (a) All varieties of textiles, namely, cotton, woollen or artificial silk including rayon or nylon, whether manufactured in mills, power looms or in handlooms; and (b) Hoseiry cloth in lengths. Subject to fulfilment of two conditions : (i) they should be produced or manufactured in India; and (ii) they should be described in column (2) of the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957, during the relevant year. It is not in dispute that bedsheets, bedspreads, terry towels and napkins fall under the general description "all varieties of textiles, namely, cotton, ............ manufactured in mills, power looms or in handlooms". Nor it is disputed that the said goods are manufactured in India. The next question to be considered is whether the goods in question are textiles described in column (2) of the ADE Act ? The significance of the words "described in the First Schedule to ADE Act" becomes evident, if we have a brief look at the provisions of the ADE Act. Section 3 of the ADE Act provides for levy and collection of additional duty in respect of goods described in column (3) of the First Schedule, produced or manufactured in India, at the rates specified in column (4) of the said Schedule. The said duty is in addition to the duty of excise chargeable on such goods under the Central Excise Act, 1944 or any other law for the time being in force. Section 4 of the ADE Act provides that during each financial year, there shall be paid out of the Consolidated Fund of India to the States in accordance with the provisions of the Second Schedule to the Act, such sums, representing a part of the net proceeds of the additional duties levied and collected during that financial year. Section 4 of the ADE Act provides that during each financial year, there shall be paid out of the Consolidated Fund of India to the States in accordance with the provisions of the Second Schedule to the Act, such sums, representing a part of the net proceeds of the additional duties levied and collected during that financial year. The Second Schedule to the ADE Act specifies the percentage of net proceeds of additional duties (levied and collected during the financial year in respect of cotton fabrics, woollen fabrics and man-made fabrics), to be paid to each of the States including Karnataka. It is thus clear that the State Government wanted to exempt from sales tax, those categories of textiles which were subjected to additional excise duty under the ADE Act (a proportionate portion of which is received by the State Government under the provision of the ADE Act). It follows therefore that a "textile" which is not described in the First Schedule to the ADE Act and not therefore subject to additional excise duty under the ADE Act, is not eligible to exemption under entry No. 3 (old entry No. 8A) of the Fifth Schedule to the KST Act. If the intention of the Legislature was to exempt all textiles, entry No. 3 (old entry No. 8A) of the Fifth Schedule would have simply read "All varieties of textiles" or "all varieties of textiles, namely, cotton, woollen or artificial silk including rayon or nylon". By adding the words "as described from time to time in column (2) of the First Schedule to the ADE Act" to the description of textiles in the said exemption entry, the legislative intent not to exempt all textiles, was expressed. In fact entry No. 7A of the Second Schedule makes it clear textiles and fabrics, if they are not covered, described or specified elsewhere in any of the Schedules, will be subjected to tax. Therefore, the scheme of the Act in so far as textile is concerned was : (i) Any categories of textiles in respect of which additional excise duty was leviable, by being included in the First Schedule to the ADE Act, were exempted from sales tax. (Note : It was not necessary that the goods should have actually suffered additional excise duty under the ADE Act. (Note : It was not necessary that the goods should have actually suffered additional excise duty under the ADE Act. It was sufficient if the goods were described in the First Schedule in the ADE Act as goods in regard to which additional excise duty was leviable. This was because the goods, though described in the First Schedule to the ADE Act might not really suffer any excise duty on account of exemptions granted under the relevant enactment). (ii) All other textiles (which were not described in the First Schedule to the ADE Act) were subjected to sales tax under entry No. 7A of Part T of the Second Schedule. [Note : Subject to any other exemptions under the Fifth Schedule like entry No. 16(b) of the Fifth Schedule, relating to cloth woven on handlooms]. The appellants contend that bedsheets, bedspreads and napkins fall under the textiles described in heading No. 52.07 and terry towels fall under the textiles described in heading No. 58.02, of the First Schedule to the ADE Act. Relevant portions of the said headings in the First Schedule to the ADE Act are extracted below : ----------------------------------------------------------------------------- Heading Sub-heading Description of goods Rate of No. No. additional duty ----------------------------------------------------------------------------- 1 2 3 4 ----------------------------------------------------------------------------- 52.07 Woven fabrics of cotton containing 85% or more weight of cotton ----------------------------------------------------------------------------- 58.02 Terry towelling and similar woven terry fabrics, other than narrow fabrics of Heading No. 58.06; tufted textile fabrics, other than products of Heading No. 57.03 ----------------------------------------------------------------------------- (Note : Sub-headings, descriptions, and rates of additional duty not extracted as they are not relevant). A cursory glance of the First Schedule to the ADE Act no doubt gives an impression that bedsheets, bedspreads or napkins will fall under the description of "woven fabrics of cotton containing 85 per cent or more by weight of cotton" under heading No. 52.07 or "woven fabrics of cotton containing less than 85 per cent by weight of cotton, mixed mainly or solely with man-made fabrics" under heading No. 52.08 or "other woven fabrics of cotton" under heading No. 52.09; and that similarly, terry towels will fall under the description "terry towelling and similar woven terry fabrics" under heading No. 58.02. But, a more detailed examination would show that the position is otherwise. But, a more detailed examination would show that the position is otherwise. Headings, sub-headings and description of goods in the First Schedule to the ADE Act are extracted from the corresponding headings, sub-headings and descriptions in the Schedule to the Central Excise Tariff Act, 1985. In fact, the First Schedule to the ADE Act contains the following notes : "1. In this Schedule 'heading', 'sub-heading' and 'chapter' mean respectively a heading, sub-heading and chapter in the Schedule to the Central Excise Tariff Act, 1985. 2. The rules for the interpretation of the Schedule to the Central Excise Tariff Act, 1985, the section and Chapter notes and the General Explanatory Notes, of the said Schedule shall, as far as may be, apply to the interpretation of this Schedule." The rules for interpretation of the Excise Tariff Schedule makes it clear that where goods are, prima facie, classifiable under two or more headings, classification shall be effected by preferring the heading which provides the most specific description to the heading which provides a more general description. Not all fabrics which are subjected to excise duty under Central Excise Tariff Act, 1985 are subjected to additional excise duty under the ADE Act. To ascertain what categories of textiles are included in the First Schedule to the ADE Act, it is necessary to find out the entire range of textiles included in the Schedule to the Central Excise Tariff Act and which of them has been omitted in the First Schedule to the ADE Act. The Central Excise Tariff Act, 1985, categories textiles/fabrics into several groups, for purposes of levy of excise duty. They are : ------------------------------------------------------------------------------- Chapter Subject Relevant Headings Number ------------------------------------------------------------------------------- 50 Silk 50.05 Woven fabrics of silk or silk waste ------------------------------------------------------------------------------- 51 Wool 51.10 51.11 Woven fabrics of wool or 51.12 animal hair ------------------------------------------------------------------------------- 52 Cotton 52.07 52.08 Woven fabrics of cotton 52.09 ------------------------------------------------------------------------------- 54 Man-made filaments 54.06 Woven fabrics of synthetic 54.07 and artificial filament yarn ------------------------------------------------------------------------------- 55 Man-made staple 55.11 Woven fabrics of synthetic fabrics 55.12 artificial staple fibres 55.13 ------------------------------------------------------------------------------- 58 Woven fabrics, 58.02 Terry towelling and similar tuffed fabrics, lace woven terry fabrics etc., ------------------------------------------------------------------------------- 58.04 Tulles and other net fabrics 58.10 Quilted textile products ------------------------------------------------------------------------------- 59 Impregnated, coated and 59.03 laminated fabrics, etc. 59.05 Different types of impregnated 59.06 and coated textile 59.07 fabrics. 59.05 Different types of impregnated 59.06 and coated textile 59.07 fabrics. 59.11 ------------------------------------------------------------------------------- 60 Knitted or crocheted 60.01 Knitted/crocheted pile fabrics fabrics and terry fabrics ------------------------------------------------------------------------------- 61 Articles of apparel and (Knitted/crocheted) clothing accessories ------------------------------------------------------------------------------- 62 Articles of apparel and (Not Knitted/crocheted) clothing accessories ------------------------------------------------------------------------------- 63 Other made up textile 63.01 Blankets and travelling bags articles 63.02 Bed linen, table linen, toilet linen and kitchen linen 63.03 Curtains/Drapes 63.04 Other furnishing articles ------------------------------------------------------------------------------- Only a few of the above are included in the First Schedule to the ADE Act. For example, while woven fabrics of cotton (Heading Nos. 52.07, 52.08 and 52.09) were subjected to additional excise duty under the ADE Act, made up textile articles (Heading Nos. 63.01, 63.02, 63.03 and 63.04) are not subjected to additional duty. Having regard to the rules of interpretation of the Schedule, that is, a more specific description should be preferred to a general description, if a particular goods falls under Heading No. 63.02 because it happens to be a made up textile article, it will not fall under Heading No. 52.07 which deal with textiles of general description. Heading No. 63.02 in Chapter 63 relates to bed linen, table linen, toilet linen and kitchen linen. "Bed linen" refers to bedsheets and covers, bedspreads and pillow cases. "Table linen" refers to table cloth and napkins. "Toilet linen" refers to towels used in bathrooms and toilets. "Kitchen linen" refers to napkins, aprons, cleaning towels, etc., used in kitchens. Bedsheets and bedspreads are bed linen, and napkins are table linen, and terry towels are toilet linen. Goods falling under the Heading No. 63.02 are not mentioned in the First Schedule to the ADE Act and are not subjected to additional excise duty under the ADE Act. Bedsheets, bedspreads, napkins and terry towels, that is bed linen, table linen or toilet linen, are therefore not textiles which are described in column (2) of the First Schedule to the ADE Act. Woven cotton fabrics (falling under Heading Nos. 52.07, 52.08 and 52.09) and terry towelling and similar woven terry fabrics (falling under Heading No. 58.02), other than bed linen/table linen/toilet linen/kitchen linen falling under Heading No. 63.02, are subjected to additional duty under the ADE Act. The exemption from sales tax is restricted only to those varieties of fabrics which are described in the First Schedule to the ADE Act. The exemption from sales tax is restricted only to those varieties of fabrics which are described in the First Schedule to the ADE Act. As noticed above, bed linen, table linen, toilet linen and kitchen linen falling under the Heading No. 63.02 of the Central Excise Tariff Act are not textiles described in the First Schedule to the ADE Act. Therefore, the goods in question (bedsheets, bedspreads, napkins and terry towels) will fall under entry No. 7A of Part T of the Second Schedule, and not entry No. 3 (old entry No. 8A) of the Fifth Schedule. We may point out that description of goods by reference to some other enactment, as in this case, creates considerable confusion and doubt. The subject-matter of exemptions should be made simple and self-contained instead of linking it another enactment which in turn is linked to yet another enactment. Having regard to the fact that textile items not falling under the First Schedule to the ADE Act are only a few and having regard to the fact that textiles are an essential part of daily needs of the citizens, the State may consider exempting all textiles/fabrics instead of restricting the exemptions to the items enumerated in the First Schedule to the ADE Act. This of course is only a suggestion for consideration and not intended to interfere with Government Policy. For the reasons stated above, we are of the view that the revisional authority was justified in his view that the orders of the appellate authority in the two cases were erroneous and prejudicial to the Revenue and consequently reversing them. As a result, these appeals are dismissed. Appeals dismissed.