Classification of absorbent cotton wool as surgical dressing under sales tax law upheld over unmanufactured cotton treatment.

Absorbent cotton wool that had undergone manufacturing processes could not be treated as cotton in its unmanufactured state under item 2 of the Second Schedule to the Tamil Nadu General Sales Tax Act, 1959. Because it was marketed as absorbent cotton wool I.P. in packed form for use as surgical dressing, with a label requiring sterilisation before use, it answered the description of "surgical dressing" under item 95 of the First Schedule. The product was therefore correctly classified under item 95 and not under item 2.

---

---

Issues: Whether absorbent cotton wool was classifiable as "surgical dressing" under item 95 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959, or as cotton in its unmanufactured state under item 2 of the Second Schedule to the Tamil Nadu General Sales Tax Act, 1959.

Analysis: Item 2 of the Second Schedule applies only to cotton in its unmanufactured state, whereas the product in question had undergone manufacturing processes and therefore could not be treated as unmanufactured cotton. Item 95 of the First Schedule expressly includes "surgical dressing", and the product was marketed as absorbent cotton wool I.P. in packed form for use as surgical dressing, with a label requiring sterilisation before use. These features showed that the product answered the description of surgical dressing.

Conclusion: The product was correctly classified under item 95 of the First Schedule and not under item 2 of the Second Schedule, and the assessee's challenge failed.

---