Carpet woollen yarn outside yarn and woollen goods entries, treated as unclassified goods under the general tax rate.

Carpet woollen yarn was examined against the notified entries for "yarn" and "woollen goods" under the sales tax scheme. The Court treated "yarn" in its ordinary sense as spun textile fibre and noted that the commodity was not produced by spinning, was not used in weaving, and was used only for knotting in carpet manufacture. It also rejected the broader popular description of yarn, treating the article more closely as unspun fibre outside the notified entry, and held that "woollen goods" refers to finished goods rather than raw material. The commodity was therefore taxable as an unclassified item at the general rate.

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Issues: Whether carpet woollen yarn is covered by the entry of "yarn" in the relevant notifications under section 3-A, or by the entry of "woollen goods", or falls outside both and is taxable as an unclassified item under section 3.

Analysis: The expression "yarn" was not defined in the Act and had to be understood in its ordinary sense as a textile fibre produced by spinning. On the findings accepted by the Court, the commodity in question was not produced by spinning, was not used in weaving, and was used only in knotting in carpet manufacture. The Court further held that even if the article was popularly called yarn, it answered more closely to unspun fibre, and such fibre was outside the notified entry because it was not used in weaving. The alternative contention that it was "woollen goods" was rejected because woollen goods meant finished goods, whereas the commodity was only raw material.

Conclusion: Carpet woollen yarn did not fall within either the yarn entries or the woollen goods entry, and was assessable as an unclassified item at the general rate under section 3.

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