STATE OF ORISSA Vs. CUTTACK MONIHARY STORE

JUDGEMENT

(1.) THE question that has been referred for opinion of this Court by the Sales Tax Tribunal, Orissa, is :

(2.) FOR the reasons indicated by a Division Bench of this Court in the case of Srinivasa Distributing Agencies v. State of Orissa [1981] 48 STC 453 and the further clarification made by us today in our order in State of Orissa v. Voona Suru Patra and Sons (S. J. C. No. 119 of 1977) [1982] 51 STC 410, which we adopt, we hold that sewing thread is cotton yarn and is liable to tax at the rate prescribed for taxing the turnover of cotton yarn. Our answer, therefore, is against the revenue and we must hold that the appropriate rate of tax is 2 per cent and not 5 per cent. There will be no order for costs. BEHERA, J.- I agree with my Lord, the Chief Justice. Reference answered in the affirmative.