STATE OF ANDHRA PRADESH Vs. AKKAMAMBA TEXTILES LTD

JUDGEMENT

(1.) THE question in this batch of tax revision cases is whether cotton yarn in which the non-cotton content is 10 per cent is "cotton yarn" within the meaning of entry 10 of the Third Schedule to the Andhra Pradesh General Sales Tax Act, 1957 ?

(2.) THE assessment years concerned herein are no doubt different, but all of them fall prior to July 1, 1985. The amending Act 18 of 1985 was brought into force with effect from July 1, 1985. Entry 165, inter alia, was added in the First Schedule. Entry 165 reads as follows : " Blended cotton yarn with non-cellulosic fibre content not exceeding 16 2/3 per cent by weight to that of cotton yarn (i. e. , cotton/viscose or cotton/polysonic ). "

(3.) THE petitioner's contention is that the very expression "blended yarn" means yarn where artificial fibre is mixed with cotton yarn. Be that as it may, it is admitted that there is no separate entry for blended cotton yarn. The fact remains that the goods before us is cotton yarn mixed with man-made staple fibre to an extent of 10 per cent. Applying the test of predominance, we hold that the blended yarn concerned herein is cotton yarn within the meaning of entry 10 in the Third Schedule to the Andhra Pradesh General Sales Tax Act. We may also mention in this regard that the reason for placing cotton yarn in the Third Schedule to the Andhra Pradesh General Sales Tax Act. We may also mention in this regard that the reason for placing cotton yarn in the Third Schedule is because they are goods, which are declared to be essential in the interest of inter-State trade (declared goods ). Placing the above construction would be consistent with the object and purpose underlying the placing of the said goods in the Third Schedule.