2001 (9) TMI 1081 - HC - VAT and Sales Tax

Summary

The Madras High Court ruled that sewing thread is considered cotton yarn and should be taxed as declared goods at a single point, not as general goods. The Tribunal's decision to tax sewing thread differently was overturned based on previous court judgments. The court emphasized that sewing thread retains its identity as cotton yarn even when dyed and sold for sewing purposes. The writ petition was allowed, setting aside the Tribunal's order.