Broad construction of "cloth" brings sarees and dhoties within sales tax entries; exemption notifications did not narrow the provision.

The expression "cloth" and "cotton cloth" was construed in its ordinary, broad sense, so sarees and dhoties were treated as falling within the relevant sales tax entries under the Madras General Sales Tax Act, 1939 and the Hyderabad General Sales Tax Act, 1950. The exemption notifications under section 7 of the Hyderabad Act were treated as clarificatory and did not narrow the scope of section 6(v), leaving the statutory construction unchanged. One revision also required factual inquiry into whether part of the turnover related to goods below the prescribed per-yard value, so that issue was remanded for investigation.

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Issues: (i) Whether sarees and dhoties fall within the expression "cloth" or "cotton cloth" under item 1 of section 3(2-A) of the Madras General Sales Tax Act, 1939 and clause (v) of section 6 of the Hyderabad General Sales Tax Act, 1950. (ii) Whether the exemption notifications issued under section 7 of the Hyderabad General Sales Tax Act, 1950 affect the construction of section 6(v), and whether the turnover below the prescribed per-yard value required factual examination.

Issue (i): Whether sarees and dhoties fall within the expression "cloth" or "cotton cloth" under item 1 of section 3(2-A) of the Madras General Sales Tax Act, 1939 and clause (v) of section 6 of the Hyderabad General Sales Tax Act, 1950.

Analysis: The expression "cloth" was construed in its ordinary and wide sense. The language of the relevant charging provisions was treated as comprehensive enough to include fabrics used as wearing apparel, and not merely fabric sold by the yard. The Court relied on the common understanding of the word, the dictionary meanings, and the principle that general words should receive their full natural meaning unless the statute indicates a contrary intent. A narrow construction would defeat the scope of the item and render it ineffective.

Conclusion: Sarees and dhoties are included within "cloth" and "cotton cloth" for the purposes of the relevant sales tax provisions, in favour of Revenue.

Issue (ii): Whether the exemption notifications issued under section 7 of the Hyderabad General Sales Tax Act, 1950 affect the construction of section 6(v), and whether the turnover below the prescribed per-yard value required factual examination.

Analysis: The notifications exempting certain handloom goods were treated as clarificatory and not as a basis for cutting down the scope of section 6(v). At the same time, one revision required examination of the factual question whether a part of the turnover related to goods below the prescribed value per yard, an aspect not investigated by the Tribunal and therefore needing further enquiry.

Conclusion: The notifications did not alter the construction of section 6(v), and the separate factual question in one revision required remand for investigation.

Final Conclusion: The legal interpretation of the taxing entries was resolved against the assessees, but one matter was sent back for factual determination on the turnover valuation issue.

Ratio Decidendi: A word of general import in a taxing statute must be given its full ordinary meaning unless the statute itself shows a contrary intention; accordingly, fabrics used as wearing apparel may fall within "cloth" where the statutory context supports a broad construction.

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