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TMI Blog1990 (6) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... and not at the rate assessed by the assessing authority. On appeal, the appellate authority came to the conclusion that sewing thread is taxable at multipoint. The contention raised in respect of the other item of turnover was also rejected. On further appeal by the assessee, the Tribunal held that sewing thread falls within the expression "cotton yam" and is not a different commodity and, therefore, not taxable as a multi-point commodity. Hence, the Tribunal ordered that the second sales of cotton yarn, representing the first item of turnover referred to above be exempt and that the second item of turnover referred to above be assessed at 3 per cent as first sales of cotton yarn. 2.. Aggrieved against the said orders of the Tribunal, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of this Court reported in Madura Mills Company Ltd. v. Government of Madras [1970] 25 STC 407. Even that apart, we are inclined to agree with the ratio of reasoning adopted by this Court in the decisions referred to above in interpreting the entry "cotton yam". So far as the other judgment pressed into service on behalf of the State is concerned, we are of the view that a too narrow construction of the entry has been adopted. The Allahabad High Court, which dealt with the case reported in Mohta Trading Co. v. Commissioner of Sales Tax [1976] 38 STC 11, further appears to have been concerned more with the particular notification of exemption in that State which exempted "cotton yam on cops and cones". While so construing, the court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is Court, which was concerned with the issue as to whether cotton bandings and cotton ropes sold by the assessee concerned fall within the definition of "textiles" or "cotton yam", held that yam does not lose its character as yam merely by reason of its consisting of a bunch of threads, as in the case of doubling and twisting together of two or more threads to make a stronger or firmer thread in order to manufacture a specified kind of textile. The learned Judges held that a bunch of spun thread could also come within the definition of "cotton yarn" if it can be used for the manufacture of any textile. In the other decision reported in State of Tamil Nadu v. Vaithilingam [1980] 46 STC 297, this Court held that having regard to the entry whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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