1991 (3) TMI 376

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..... ment years 1977-78 and 1978-79. The assessing authority as well as the appellate authority treated the waste cotton purchased by the assessee and consumed by it in its mill for manufacture of low count yarn as inferior cotton and held the same liable to tax under section 4 of the Tamil Nadu General Sales Tax Act at the point of last purchase of cotton. The assessee went up in appeal in both the ca .....

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..... show that what it had purchased was only "cotton waste" the assessment in respect of that turnover was confirmed. 2.. The only meaningful question which we are called upon to decide at this stage is as to whether the "waste cotton" purchased by the assessee is a commodity distinct from "cotton" and further whether it is "inferior cotton" at all. 3.. That "cotton" and "cotton waste" are commodi .....

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..... to the provisions of the Act and the Schedule to equate "cotton waste" with "cotton" merely because "cotton waste" can also be sometimes used for the manufacture of low count yarn, as has been done by the appellate authority. Thus, on the basis of the finding of the last fact finding authority, it must be held that the commodity purchased by the assessee could not be treated as "inferior cotton" a .....

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