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TMI Blog1975 (4) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... ther "yarn" nor "woollen goods" falling under the aforesaid notifications issued under section 3-A. It is an unclassified item and its turnover is liable to tax at the rate of 2 per cent under section 3 of the Act. Thus we affirm the answer given by the High Court to the question referred. - Civil Appeal No. 1934, 1935 of 1970, 1172, 1173 of 1974, S.T.R. No. 191 of 1969 - - - Dated:- 21-4-1975 - SARKARIA R.S. AND GUPTA A.C. JJ. S.C. Manchanda, Senior Advocate (P.C Kapoor, Advocate, with him) for the respondent. O.P. Rana, Advocate, for the appellant. -------------------------------------------------- The judgment of the Court was delivered by SARKARTIA, J. -These appeals by special leave are directed against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... versed that interpretation and held that woollen carpet kati was an "unclassified item" taxable at the rate of 2 per cent. The Commissioner of Sales Tax moved the revisional authority under section 10 of the Act against the order of the Assistant Commissioner (Judicial). The Judge (Revisions) agreed with the interpretation adopted by the Assistant Commissioner (Judicial) and dismissed the revision application. On applications filed by the Commissioner under section 11(3) of the Act, the judge (Revisions) referred the aforesaid question to the High Court. The High Court also held that the woollen carpet kati is not "yarn" since it is unspun fibre not used in weaving and, as such, it is not taxable as a "kind of yarn" under the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " as an article different from "Yarn" and "woollen goods" within the contemplation of the aforesaid notifications. It is stressed that for the first time it was on 23rd September, 1963, that the Sales Tax Officer departed from this time-honoured interpretation and held "woollen carpet kati" to be "yarn" within the said notifications. It is submitted that the High Court's opinion that woollen carpet kati is neither "yarn" nor "woollen goods" proceeds on facts found by the assessing authority on the basis of evidence adduced regarding the nature and use of this article. On those facts, it is maintained, no other reasonable interpretation than the one accepted by the High Court is possible. The notifications concerned issued under section 3- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es its meaning thus: "Any fibre, as wool, silk, flax, cotton, nylon, etc., spun into strands for weaving, knitting or making thread." Thus, a fibre in order to answer the description of "yarn" in the ordi- nary commercial sense must have two characteristics. Firstly, it should be a spun strand. Secondly, such strand should be primarily meant for use in weaving, knitting or rope-making. Now, it is an undisputed fact, in the instant case, that "woollen carpet kati" is unspun fibre. It lacks the first characteristic of "Yarn". It is therefore possible to say that, by itself, the expression "yarn of all kinds" in the notifications, quoted above, would not cover unspun fibres. But the succeeding phrase "including unspun fibre used in weaving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mined pattern, producing a new shed or different combination of raised and lowered warp yarns. The filling yarn are beaten down with a weaver's reed to make a tighter weave." (Encyclopaedia Britannica, Vol. 23, page 342, 1971 Edn.) Thus "weaving" is the process of combining warp and weft components (respectively lengthwise and crosswise) to make a woven structure. The threads that lie lengthwise are called the warp. The other threads, which are combined with the warp and lie widthwise, are called the "weft", also known as "woof". An individual thread from the warp of indefinite length is called an end; each individual length of weft from one edge to the other is called a pick. Consecutive picks are usually consecutive lengths of one p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... different spun fibre of great tensile strength, i.e., of yarn. The process of looping or knotting these pile tufts is different and distinct from the process of lengthwise and crosswise combining of warp and weft components, which makes the woven basic structure of the carpet. In view of these primary facts found by the taxing authorities, the conclusion is inescapable that woollen carpet kati is neither "yarn" nor "unspun fibre used in weaving" within the contemplation of the aforesaid notifications issued under section 3-A. This takes us to the second question as to whether such kati would fall within the ambit of "woollen goods" under entry 46 of notification (iii) set out above. Here also, we find ourselves in agreement with the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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