9911796707
TMI Blog1991 (4) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 of Schedule II, Part A to the Gujarat Sales Tax Act, 1969, but were the goods sale of which was taxable at the rate applicable to the goods covered by entry 13 of Schedule III to the Gujarat Sales Tax Act, 1969?" 2.. In order to answer the question referred to us, it is necessary to refer to relevant facts: (i) The applicant, a registered dealer carried on business of purchase and resale of yarn, cotton, groundnuts, etc., at Gondal in Rajkot district. The applicant purchased two varieties of yarn from a selling dealer at Bombay and resold them to one dealer at Ahmedabad under sale bill No. 91 dated 25th January, 1978. The applicant thereafter filed an application under section 62 of the said Act before the Deputy Commissioner of Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being entry 2 of Schedule II, Part A, to the said Act runs as under: "2. Cotton yarn, but not including cotton yarn waste." Based on this entry the applicant submits that the yarn which was sold by it by sale bill was cotton yarn inasmuch as cotton component in the said yarn was 80 per cent to 85 per cent while the viscose content was between 15 per cent to 20 per cent. The predominant component being cotton the said yarn should be regarded as cotton yarn. The applicant further contends that at the relevant time, i.e., yarn which is admixture of cotton yarn and other man-made staple yarn or other synthetic yarn (sic). In the absence of any specific entry for blended yarn the test of predominant component should be applied, submits the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court to apply the test of predominance, and if cotton predominant inasmuch it was 90 per cent in the case before the A.P. High Court and 80 per cent to 85 per cent before us the same should be regarded as cotton yarn. We may also note at this stage the scheme under which yarns of different varieties are taxed under the Gujarat Sales Tax Act. A reference to Schedule II, Part A to the said Act as it stood then, would show that cotton yarn, silk yarn, wool yarn and staple fibre and staple fibre yarn, terylene fibre and terylene fibre yarn and other synthetic fibres and synthetic yarns were taxed at 4 paise in a rupee. It is also required to be seen that at the relevant time there was no entry in the said list dealing with the mixed or blende ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
