TMI Blog1980 (7) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... all these cases (hereinafter referred to as the assessee) is a dealer in waste silk and pierced cocoons. During the relevant years, the assessee had sold pierced cocoons. The assessing officer was of the opinion that the pierced cocoons fell within the expression of "raw silk" included under entry 38-A of the Fifth Schedule to the Act and therefore the turnover pertaining to pierced cocoons was exempt from payment of tax under the Act. The Deputy Commissioner of Commercial Taxes having entertained the view that the order of the assessing authority was erroneous and prejudicial to the revenue, revised the orders in exercise of his suo motu revisional powers under section 21 of the Act. Aggrieved by the orders of the Deputy Commissioner, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsued between the Commissioner and one of the dealers and between the Commissioner and the Director of Sericulture, in connection with the necessity of taking licence by persons dealing in pierced cocoons under section 6 of the Act, as it stood prior to 1966. In the letter dated 1st October, 1965, the Commissioner of Commercial Taxes was of the opinion that pierced cocoons should be treated as "raw silk" and, therefore, subject to the licence fee under section 6 of the Act. In a letter dated 14th November, 1966, addressed to the Director of Sericulture, the Commissioner of Commercial Taxes expressed the opinion that pierced cocoons are considered as raw silk and, therefore, subject to the licence fee under section 6 of the Act. The Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct with oxygen. This solidified material is the silk filament. The silkworm 'larva' spins the silk filament around itself as a protective shell and this is called cocoon. Each such cocoon is nothing but a continuous length of silk filament. The length of the silk filament from a single cocoon is about 500 metres. Within two days, the silkworm spins the cocoon and rests inside as 'pupa'. Essentially the cocoon is purely a natural protection to the worm against enemies and climatic conditions, so that it may undergo the next two phases of life, namely, pupa and the moth. If allowed to continue at this stage, within 10 days the pupa undergoes a metamorphosis and becomes moth, developing wings. It then pierces its protective shell and comes out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cocoon. But from such cocoons, silk thread is produced by the process of spinning. In this process waste silk inferior cocoons are used along with pierced cocoons. The yarn so produced is used for manufacture of silk cloth called "spun silk". This information is also available from the book mentioned earlier under the heading "Spun Silk Industry", relevant portion of which reads: "In the process of reeling, about 30 per cent of the silk cannot be reeled and it is obtained as by-product. This waste forms the bulk of the raw material for the spun silk industry, which is playing a major role to earn foreign exchange and provide employment to the poorer class, thereby contributing much to the economy of the State and the individual. This is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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