TMI Blog1991 (6) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... y. On appeal, the appellate authority came to the conclusion that sewing thread is taxable at multi-point. The contention raised in respect of the other item of turnover was also rejected. On further appeal by the assessee, the Tribunal held that sewing thread falls within the expression "cotton yarn" and is not a different commodity and, therefore, not taxable as a multi-point commodity. Hence, the Tribunal orderd that the second sales of cotton yarn representing the first item of turnover referred to above be exempt and that the second item of turnover referred to above be assessed at 3 per cent as first sales of cotton yarn. 2.. Aggrieved against the said orders of the Tribunal, the State has filed the above tax revision case. 3.. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mited v. Government of Madras [1970] 25 STC 407. Even that apart, we are inclined to agree with the ratio of reasoning adopted by this Court in the decisions referred to above in interpreting the entry "cotton yarn". So far as the other judgment pressed into service on behalf of the State is concerned, we are of the view that a too narrow construction of the entry has been adopted. The Allahabad High Court, which dealt with the case reported in Mohta Trading Co. v. Commissioner of Sales Tax [1976] 38 STC 11, further appears to have been concerned more with the particular notification of exemption in that State which exempted "cotton yarn on cops and cones". While so construing, the court proceeded that inasmuch as there is no separate ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to whether cotton bandings and cotton ropes sold by the assessee concerned fall within the definition of "textiles" or "cotton yarn", held that yarn does not lose its character as yarn merely by reason of its consisting of a bunch of thread, as in the case of doubling and twisting together of two or more threads to make a stronger or firmer thread in order to manufacture a specified kind of textile. The learned Judges held that a bunch of spun thread could also come within the definition of "cotton yarn" if it can be used for the manufacture of any textiles. In the other decision reported in State of Tamil Nadu v. Vaithilingam [1980] 46 STC 297, this Court held that having regard to the entry which uses the expression "cotton yarn ", the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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