TMI Blog2001 (12) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... ay of deferral of sales tax payable on such products for a period of nine years, from the date of commencement of production. 2.. Cotton waste is an inevitable by-product in the spinning mill. The various processes, which cotton undergoes before the spun yarn is obtained, have been described in the counter-affidavit filed on behalf of the dealer. The process as set out therein are: (a) The first process is called as "mixing/blending" wherein different constituent of raw cotton are mixed for spinning a particular count. The waste cotton arising in this process is very negligible, namely, approximately 0.01 per cent of the total wastage which is called as "yellow cotton". (b) The next stage is "blow room" wherein the compressed lumps of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , comber. (f) Before comber, two processes are there, wherein the multiple silver is passed through a series of pairs of rollers moving at progressively increasing surface speed. This helps parallelisation of fibres, removal of hooks, and regularisation of weight per unit length. The next process involves retransmission of adjoining slivers into a narrow lap for feeding it in comber. (g) The next process is called as "combing" wherein the fibres are combed by means of a rotating cylinder, having a number of pins. The fibre in the form of sheet from ribbon lap/lap former are fed at back of comber machines and when the sheet of fibre is gripped firmly between the pair of nippers, the combing cylinder passes through, removing the short f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lankets, domestic sheets and such waste itself is treated as finished product and is commercially marketable. 4.. The cotton waste which is obtained in the process of manufacture of the yarn has also been treated in the State Sales Tax Act as a distinct commercial commodity and distinct product, which is subjected to tax at the point of first sale in the State. 5.. The word "product" has not been defined in G.O. P. No. 92. It only refers to the products manufactured by the new units established in the backward taluks to which the G.O. applies. The G.O. clearly recognises that the unit may manufacture more than one product. In the absence of any definition limiting the scope for the product only to the principal product, for the manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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