Broad classification of synthetic yarn held to include side strips from metallic yarn manufacture under sales tax entry.

Side strips emerging during manufacture of metallic yarn from polyester film were treated as synthetic yarn for purposes of entry 21 of Schedule II, Part A, to the Gujarat Sales Tax Act, 1969. The provision was read broadly to cover staple fibre, terylene fibre, all other synthetic fibres and synthetic yarns, including waste thereof. Because the strips were sold as yarn of 750 deniers and above and were used for weaving and ornamental purposes, their separate description in sale bills did not prevent classification under the entry. The Tribunal's contrary view was incorrect.

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Issues: Whether side strips sold by the applicant were covered by entry 21 of Schedule II, Part A, to the Gujarat Sales Tax Act, 1969.

Analysis: The side strips emerged in the course of manufacture of metallic yarn from polyester film and were a product of the same material. The evidence showed that they were sold as yarn of 750 deniers and above and were used, at least to some extent, for weaving and for making borders and ornamental hangings. Entry 21 was a comprehensive provision covering staple fibre, terylene fibre, all other synthetic fibres and synthetic yarns, including waste thereof. The breadth of the expression "all other synthetic yarns" was sufficient to include side strips, even if they were of uneven width and were separately described in sale bills as a distinct commodity.

Conclusion: Side strips sold by the applicant were covered by entry 21 of Schedule II, Part A, to the Gujarat Sales Tax Act, 1969, and the Tribunal was wrong in holding otherwise.

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