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TMI Blog1977 (9) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year 1972-73. The only question that is raised and arises in these two cases is, whether cotton rags come within the definition of "cotton fabrics" in item 5 of the Fourth Schedule to the Act. The plea of the petitioner that they come within the definition of "cotton fabrics" was negatived by all the lower authorities. Hence these two tax revision cases under section 22 of the Act. To determine the question involved it is necessary to notice item 5 of the Fourth Schedule to the Act. It reads thus: "FOURTH SCHEDULE (Goods exempted from tax under section 8) * * * * 5.. Cotton fabrics, rayon or artificial silk fabrics and woollen fabrics. * * * * Explanation.-The expressions in items 5, 6 and 7 shall have the same meanings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Mr. Sastry, when once cotton fabrics come out of the mill and undergo the process of tailoring, or are used by people, they cease to be cotton fabrics. We are unable to agree with Mr. Sastry that merely because the rags are collected from tailor shops or from households they become something different from "cotton fabrics". The rags with which we are concerned have not ceased to be cotton fabrics merely because they have gone through the tailoring process, or have come out of the torn dhoties, sarees, shirts and the like. It cannot be disputed that the rags are fabrics and they have been manufactured from cotton. What is necessary to make "cotton fabrics" is the manufacture of all varieties of fabrics wholly or partly from cotton, as sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g sizes which are left out as of no use by tailors. The question is not whether a cotton fabric has changed hands, and in what form or shape it is ultimately sold, but whether a rag comes within the definition or meaning of a cotton fabric. Rags are of several varieties. They may consist of defectively manufactured cloth by the mills and sold as such, cloth left out after tailoring, used cotton fabrics in households such as torn bed-sheets, sarees, pillow-cases, table-cloths, wearing apparels, etc. If defective fabrics of varying sizes manufactured by the mills come within the meaning of "cotton fabrics" there is no reason why bits of cloth (cotton fabrics) found in a tailor shop, or torn or used cloth material in the households should be l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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