Finished tarpaulin is not textile for sales tax exemption when it becomes a distinct commercial product.

Finished tarpaulin sold as a distinct commercial product is not treated as textile under item 4 of Schedule III because processed canvas cloth, after cutting, stitching the edges and fixing eyelets, loses the character and properties of cloth. The court noted that although the base material may be textile, the finished tarpaulin is a different commodity from processed canvas cloth. As a result, it does not qualify for exemption under section 8 of the Tamil Nadu General Sales Tax Act, 1959, and remains liable to sales tax.

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Issues: Whether tarpaulin sold as a finished product is a textile falling under item 4 of Schedule III so as to qualify for exemption under section 8 of the Tamil Nadu General Sales Tax Act, 1959.

Analysis: The processed canvas cloth used for making tarpaulin may be textile material, but the finished article is made by cutting, stitching the edges and fixing eyelets, resulting in a distinct commercial product. Tarpaulin as sold is not the same commodity as processed canvas cloth and does not retain the character and properties of cloth. A finished tarpaulin is therefore not covered by the exemption for textiles in item 4 of Schedule III.

Conclusion: Tarpaulin sold as a finished product is not a textile within item 4 of Schedule III and is not exempt from sales tax.

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