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TMI Blog2017 (8) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... case Popular Thread Factory Vs. Commercial Tax Officer, Chennai, [2001 (9) TMI 1081 - MADRAS HIGH COURT] has allowed the case in favor of the dealer, holding that Tribunal was wholly in error in holding that sewing thread is not cotton yarn and that the assessee can be subjected to tax by treating such sewing thread as not being declared goods - the basis for proposing to revise the petitioner's a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer issued notice dated 13.06.2001 proposing to revise the assessment under the Tamil Nadu General Sales Tax Act for the years 1998-1999, 1999-2000 and 2000-2001. The main reason for proposing to revise the assessment is by placing reliance on the decision of the Tamil Nadu Taxation Special Tribunal, Chennai, in the case of Tvl.Popular Thread Factory Vs. Commercial Tax Officer, Chennai reported i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivity of the assessee, as accepted by the Revenue is only to purchase the cotton yarn. It does not do anything more in relation thereto thereafter, except to dye it, put it into spools and sell it under its own name as sewing thread. 4. As held by this Court in State of Tamil Nadu Vs. R.V.Krishniah Chetty and Sons [1990] 92 STC 262, sewing thread does not lose its character as cotton yarn becau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der of the Tribunal is, therefore, set aside and the writ petition is allowed." 6. In the light of the decision, the basis for proposing to revise the petitioner's assessment pursuant to notice dated 13.06.2001 is no longer sustainable. 7. For the above reasons, the Writ Petitions are allowed and the impugned assessment orders are set aside. No costs. Consequently, connected miscellaneous pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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