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TMI Blog2004 (4) TMI 564X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 1984-85 by its order dated October 7, 1988 found that the turnover of imported badh (baan) in U.P. is taxable at the rate of 6 per cent. This part of the assessment order was confirmed in appeal by the Assistant Commissioner (Judicial) dated June 28, 1989. The Tribunal concluded that badh (baan) is covered within the definition of "yarn of all kinds " and as such is taxable at the rate of 2 per cent. Feeling aggrieved, the present revision challenging the rate of tax on badh (baan) at the rate of 2 per cent as held by the Tribunal, has been filed. Before the assessing authority the dealer-opposite party submitted that badh (baan) can be used for the purposes of making Rassi and in weaving of matting, etc. The assessing autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndly, such strand should be primarily meant for use in weaving, knitting or rope-making". [Commissioner of Sales Tax v. Sarin Textile Mills [1975] 35 STC 634 (SC); [1975] UPTC 429]. This decision has been followed in the case of [M. Jafar A Majid v. Commissioner of Sales Tax STI 1982 All 78; [1982] 4 STL 62 (All); [1982] UPTC 451]. "Yarn" has been interpreted by the Supreme Court with reference to the provisions of the U.P. Sales Tax Act in the case of Commissioner of Sales Tax v. Sarin Textile Mills [1975] 35 STC 634; [1975] UPTC 429 in connection with the phrase "woollen carpet yarn". The said word is not defined either in the Act and Rules or, in the notifications. The dictionary meaning of these words, as noted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'weaving' implies the process of forming thread into fabric by interlacing. 'The most important method by which wool products are produced is weaving, the interlacing at right angles of two or more systems of threads. Variations are almost limitless but all are derived from three basic weaves, plain, satin and twill. Hundreds of yarns wound on large spool or beam form the warp. Each yarn is drawn through the eye of a heddle or wire mounted on a harness frame. The alternate raising and lowering of the frames, each with its hundreds of heddles controlling the warp yarns, forms the shed, the space through which the weft or filling yarn is carried by the shuttle, a long streamlined box holding a bobbin of yarn in its hollowed centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here are geometrical differences.' (Encyclopaedia ibid.)." In paragraph No. 16 See page 638 of [1975] 35 STC of the aforesaid judgment weaving has been differentiated from knitting and from net-making. The word "knitting" has not been defined either under the Act or the Rules or in the notifications. This court in Jaimets Pvt. Ltd. v. State of U.P. [1984] 55 STC 119; [1984] UPTC 67 following the aforesaid judgment of the Supreme Court has held that the acrylic (cashmelon) yarn is covered by the expression of "yarn of all kinds". Now the question arises as to whether badh (baan) is yarn or not. Badh (baan) as found by the fact-finding authorities is used mainly for the purposes of weaving cots. In this connecti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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