Cotton yarn remains the same taxable commodity after dyeing and colouring, so no separate sales tax applies.

Dyeing and colouring cotton yarn did not change its essential identity or create a distinct taxable commodity under section 5 read with entry 4(ii) of the Kerala General Sales Tax Act, 1963. The statutory entry continued to cover the goods as cotton yarn, and the process only altered appearance without transformation into another article. On that construction, no separate sales tax was exigible merely because the yarn had been dyed and coloured, and the Tribunal's view in favour of the assessee was upheld.

---

---

Issues: Whether cotton yarn continued to remain the same taxable commodity after dyeing and colouring, so as to attract sales tax separately under section 5 read with entry 4(ii) of the Second Schedule to the Kerala General Sales Tax Act, 1963.

Analysis: The charging provision under section 5 applied in conjunction with the relevant schedule entry, which described cotton yarn as a taxable commodity. The process of dyeing and colouring did not convert cotton yarn into a different article or bring about any transformation in its identity. The commodity remained cotton yarn notwithstanding the change in appearance. The construction of the statutory entry and the supporting authorities showed that dyeing alone did not create a distinct taxable article.

Conclusion: Cotton yarn dyed and coloured remained cotton yarn within the meaning of the schedule entry, and no separate sales tax was exigible on that account. The decision of the Tribunal was upheld in favour of the assessee.

---