Coir yarn treated as "yarn of all kinds except cotton yarn" and taxed as a classified item.

Coir yarn was treated as falling within the entry "yarn of all kinds except cotton yarn" because the term "yarn" was given its ordinary commercial meaning as a spun strand used for weaving, knitting or rope-making. The text notes that coir yarn is produced by spinning coir and is used for rope-making, and that its use in coir matting also answers the weaving requirement. On that basis, coir yarn was covered by the notification and taxable as a classified item at 2 per cent.

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Issues: Whether coir yarn falls within the entry "yarn of all kinds except cotton yarn" in Notification No. S.T.-II8224/X-9(213)-77-U.P. Act XV/48-Order-79 dated 31st August, 1979 and is therefore taxable at 2 per cent as a classified item.

Analysis: The relevant entry covered yarn of all kinds except cotton yarn. The expression "yarn" had to be understood in its ordinary commercial sense, which required a spun strand meant for use in weaving, knitting or rope-making. Coir yarn was found to be obtained by spinning coir, satisfying the first characteristic. It was also accepted that coir yarn was used for rope-making, which was enough to satisfy the second characteristic. The use of coir yarn in coir matting was also treated as weaving, since matting is produced by the weaving of coir yarn.

Conclusion: Coir yarn was covered by the notification entry and was rightly taxed as a classified item at 2 per cent, in favour of the assessee.

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