Tax classification of cotton sewing thread shifted to unclassified rate after a later notification excluded it from the earlier classified category.

Cotton sewing thread was treated as an unclassified item for the assessment year 1979-80 because a later notification excluded sewing, embroidery and knitting materials from the earlier classified category, leaving the commodity taxable at the residual rate. The revision court also declined to entertain the plea that the assessment reflected a change of opinion, because that factual contention had not been raised before the Tribunal and required investigation. The revisional challenge therefore failed, and the Tribunal's tax classification was sustained.

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Issues: Whether cotton sewing thread was liable to be taxed as a classified item or as an unclassified item for the assessment year 1979-80; and whether the plea that the assessment was based on a change of opinion could be entertained in revision.

Analysis: The relevant notifications initially treated sewing, embroidery or knitting materials as classified items, but a later notification excluded those entries from the earlier classification. On that basis, the commodity dealt with by the assessee ceased to attract tax at the classified rate and was taxable as an unclassified item for the assessment year in question. The additional contention based on change of opinion was not allowed because the factual plea requiring investigation had not been raised before the Tribunal.

Conclusion: Cotton sewing thread was rightly taxed as an unclassified item, and the change of opinion plea was not entertained.

Final Conclusion: The revisional challenge failed, and the Tribunal's view on tax classification was sustained.

Ratio Decidendi: Where a later notification excludes an item from an earlier classified category, the item becomes taxable according to the residual unclassified rate, and a new factual plea not raised before the Tribunal cannot be entertained in revision.

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