Hand-spun yarn exemption survives twisting where the commodity's essential identity and commercial character remain unchanged.

Twisting hand-spun yarn did not create a commercially different commodity, so the exemption for hand-spun yarn under the sales tax notification continued to apply. The court treated twisting as a mechanical post-spinning process that did not alter the essential identity or commercial character of the yarn. As the notification exempted hand-spun yarn as distinct from mill-spun yarn, the mere fact that the yarn had been twisted was not enough to deny exemption. Twisted yarn was therefore regarded as hand-spun yarn for the purpose of the notification, and the exemption remained available to the assessee.

---

---

Issues: Whether twisted hand-spun yarn continued to fall within the exemption granted to "hand-spun yarn" under the sales tax notification.

Analysis: The exemption turned on the identity and commercial character of the commodity. Twisting was treated as a mechanical process that did not convert hand-spun yarn into a commercially different article. The essential nature of the yarn remained unchanged, and the notification was read as exempting hand-spun yarn as opposed to mill-spun yarn. A process of twisting, even if described as manufacture, would not defeat exemption unless it resulted in a different commercial commodity.

Conclusion: Twisted yarn remained hand-spun yarn for the purpose of the notification and was entitled to exemption. The question was answered in favour of the assessee and against the department.

Ratio Decidendi: Where a post-spinning process does not produce a commercially different commodity and the essential identity of the goods remains the same, exemption granted to the original commodity continues to apply.

---