Statutory classification of rayon and nylon yarn as artificial silk upheld, making them taxable under the textiles law.

Rayon and nylon yarn were treated as falling within both "other fibre" and "artificial silk" under section 2(g) of the Textiles Committee Act, 1963, following a binding Supreme Court interpretation in connected matters. That construction made the goods taxable under section 5A of the Act, and the contrary argument in the petition could not be accepted. Applying that controlling classification, the writ petition was liable to be dismissed, with the issue decided in favour of the Revenue.

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Issues: Whether rayon and nylon yarn fall within the expression "other fibre" and "artificial silk" under the Textiles Committee Act, 1963, and are consequently taxable under the Act.

Analysis: The issue had already been concluded by a recent Supreme Court decision in a common judgment covering connected matters. That decision held that rayon and nylon yarn are not only "other fibre" but also yarn of "artificial silk" within the meaning of section 2(g) of the Textiles Committee Act, 1963, and are therefore taxable under section 5A of the Act. Following that binding determination, the contrary contention raised in the petition could not be accepted.

Conclusion: The issue is answered against the petitioner and in favour of the Revenue.

Final Conclusion: The writ petition was liable to be dismissed because the controlling legal position treated rayon and nylon yarn as taxable under the Act.

Ratio Decidendi: Where the Supreme Court has conclusively interpreted the relevant statutory definition to include the goods in question, the same classification governs and the goods are liable to taxation under the Act.

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