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The State of Tamil Nadu Vs. M. Vaithilingam - Court Judgment

LegalCrystal Citation
SubjectSales Tax
CourtChennai High Court
Decided On
Case Number Tax Case No. 1172 of 1979 (Revision No. 360 of 1979)
Judge
Reported in[1980]46STC297(Mad)
AppellantThe State of Tamil Nadu
RespondentM. Vaithilingam
Advocates: The Additional Government Pleader
DispositionPetition dismissed
Excerpt:
- m.m. ismail, c.j.1. the question involved in this case is whether cotton thread sold by the assessee will come under serial no. 3 of the second schedule to the tamil nadu general sales tax act or not. the entry merely uses the expression 'cotton yarn'. the tribunal points out in paragraph 3 of its order that cotton yarn was purchased by the assessee, bleached and sold as spindles of cotton thread for packing by buyers. the departmental authorities contended that because the assessee twisted the cotton yarn and made them into thread balls, it will cease to be cotton yarn falling within the scope of serial no. 3 of the second schedule. the tribunal pointed out that the product sold by the assessee as cotton thread would definitely be used to make the textile or ply. in view of this finding,.....
Judgment:

M.M. Ismail, C.J.

1. The question involved in this case is whether cotton thread sold by the assessee will come under serial No. 3 of the Second Schedule to the Tamil Nadu General Sales Tax Act or not. The entry merely uses the expression 'cotton yarn'. The Tribunal points out in paragraph 3 of its order that cotton yarn was purchased by the assessee, bleached and sold as spindles of cotton thread for packing by buyers. The departmental authorities contended that because the assessee twisted the cotton yarn and made them into thread balls, it will cease to be cotton yarn falling within the scope of serial No. 3 of the Second Schedule. The Tribunal pointed out that the product sold by the assessee as cotton thread would definitely be used to make the textile or ply. In view of this finding, even on the basis of the narrow construction which the petitioner wants to put on the term 'cotton yarn' occurring in serial No. 3 of the Second Schedule, the turnover was not liable to tax. Consequently, the revision petition fails and it is dismissed.


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