Ordinary meaning of "cloth" excludes cotton hose once transformed into a distinct marketable article.

Cotton hose made from thick cotton yarn on circular weaving machines was held not to fall within "cloth" in entry No. 6 of Schedule I to the M.P. General Sales Tax Act, 1958. The court applied the ordinary and popular meaning of cloth as woven fabric or stuff, but only while the material retains that character. Once the yarn was cut into different sizes and transformed into a distinct marketable article, it ceased to retain the identity of cloth. The result was that cotton hose was not exempt from tax under the entry.

---

---

Issues: Whether cotton hose is covered by the expression "cloth" in entry No. 6 of Schedule I to the M.P. General Sales Tax Act, 1958, and is therefore exempt from tax.

Analysis: Cotton hose was made by weaving thick cotton yarn on circular weaving machines, but the yarn was cut into different sizes before becoming a marketable commodity as cotton hose. On that transformation, the article ceased to retain its identity as cloth. The expression "cloth" had to be understood in its ordinary and popular sense as woven fabric or stuff, but only so long as it retained that character and had not been converted into a distinct article of commerce.

Conclusion: Cotton hose is not cloth within entry No. 6 of Schedule I and is not exempt from tax.

---