https://www.taxtmi.com/caselaws?id=151338 Mill-made cloth cut into sizes and stitched at the ends for bed sheets, napkins and towels retained its character as mill-made fabrics because no substantial change in commercial identity occurred, so the tax-free exemption applied. Pillow covers, however, were made into a finished article of different use and substantial character through cutting, stitching and preparation, so they fell outside the exemption entry and were exigible to sales tax. The governing principle is that a mere change in form does not defeat an exemption where the goods remain commercially the same, but a materially different finished commodity does not qualify. en-us Mon, 20 Sep 1976 00:00:00 +0530 Tue, 04 Jun 2013 16:58:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151338 Mill-made cloth cut into sizes and stitched at the ends for bed sheets, napkins and towels retained its character as mill-made fabrics because no substantial change in commercial identity occurred, so the tax-free exemption applied. Pillow covers, however, were made into a finished article of different use and substantial character through cutting, stitching and preparation, so they fell outside the exemption entry and were exigible to sales tax. The governing principle is that a mere change in form does not defeat an exemption where the goods remain commercially the same, but a materially different finished commodity does not qualify. Case-Laws VAT and Sales Tax Mon, 20 Sep 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151338