https://www.taxtmi.com/caselaws?id=127738 Dyed yarn remained within the exempt description of yarn, because dyeing did not alter its essential character or take it outside the Schedule II tax-free entry, so the sale was not taxable. A separate dyeing arrangement for yarn supplied by customers was treated as a contract of work and labour: the substance was dyeing the customers' yarn, with materials used only incidentally and no sale or transfer of property in those materials. That transaction was therefore not a sale of goods and did not attract sales tax. The assessment was quashed for both categories of transactions. en-us Fri, 11 Oct 1957 00:00:00 +0530 Fri, 15 Mar 2013 16:20:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=127738 Dyed yarn remained within the exempt description of yarn, because dyeing did not alter its essential character or take it outside the Schedule II tax-free entry, so the sale was not taxable. A separate dyeing arrangement for yarn supplied by customers was treated as a contract of work and labour: the substance was dyeing the customers' yarn, with materials used only incidentally and no sale or transfer of property in those materials. That transaction was therefore not a sale of goods and did not attract sales tax. The assessment was quashed for both categories of transactions. Case-Laws VAT and Sales Tax Fri, 11 Oct 1957 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=127738