K R SUBBIER Vs. STATE OF MADRAS

JUDGEMENT

(1.) THE question that arises in this case is as to whether the cotton ropes which are used for tying of cattle, etc. , would fall under the category "braided cords" coming under the notification in G. O. No. 3146, Revenue, dated 3rd August, 1962.

(2.) THE said notification reduced the rate of tax payable by a dealer under the Madras General Sales Tax Act, 1959 (hereinafter referred to as the Act) in respect of sales of braided cord and tape to 1 per cent. with effect from 22nd August, 1962. THE assessee in this case carries on business in the manufacture and sale of cotton ropes and he was assessed for the year 1962-63 at Rs. 1, 95, 114. 25 of which the turnover of Rs. 1, 92, 861. 82 was taxed at 2 per cent. and the balance of Rs. 2, 252. 43 was taxed at 1 per cent. THE assessee preferred an appeal to the appellate authority challenging the assessment to tax at 2 per cent. in respect of sales of cotton ropes effected from 22nd August, 1962, to 31st March, 1963, amounting to Rs. 1, 11, 535. 33, relying on the above notification which gave the benefit of reduction in the rate of tax to "braided cord". THE appellate authority accepted the contention of the assessee that he is entitled to the benefit of the said G. O. for the period after 22nd August, 1962, and modified the assessment. According to the appellate authority, cotton ropes, white as well as coloured, manufactured by the assessee were liable to be taxed only at 1 per cent. after 22nd August, 1962, in the light of the clarification issued by the Board of revenue on 17th April, 1963, to the following effect : "braided cords and ropes other than tapes and laces are liable to tax at 2 per cent. up to 21st August, 1962, and 1 per cent. from 22nd August, 1962, under the Madras General Sales Tax Act, 1959, and the rate of tax under section 9 (2) (b) of the Central Sales Tax Act is 7 per cent."

(3.) THE Shorter Oxford Dictionary defines" braid"as" to twist in and out, interweave, plait"," cord"as" a string, or (small) rope, composed of several strands twisted together"and" rope"as" a length of strong and stout line or cordage, usually made of twisted strands of hemp, flax, or other fibrous material, but also of strips of hide, pliant twigs, metal wire, etc. "normally a small rope can be called a" cord" * . But the question is whether rope will be "braided cord". In this case, the rope produced and sold by the petitioner has been produced before us and it consists of rope-yarns twisted into three strands and then in turn are twisted together so as to form a thick cord. THE strands have not been inter-woven or interlaced. Jagadisan, J. , in Subbaier v. R. P. F. Commissioner 1963 AIR (Mad) 112), stated : "it seems to me that necessarily weaving is involved in the production of braid or braided cords."