1987 (8) TMI 425

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....ial No. 1 of Notification No. S.T.-II8224/X-9(213)-77-U.P. Act XV/48-Order-79 dated 31st August, 1979 published in U.P. Gazette Extraordinary dated 31st August, 1979, which is reproduced below: "Serial No. 1. Yarn of all kinds except cotton yarn but 2 per cent." including 'desi kati'. this revision is filed by the Revenue against the Tribunal's order dated 22nd March, 1986. The assessee d....

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........" Relying on the Coir Industry Act, 1953, the Tribunal found as follows: "In my opinion in view of these facts the coir yarn with which the assessee deals would be covered under the entry of yarn of all kinds......" Aggrieved by the aforesaid finding of the Tribunal, the Revenue filed the instant revision. Learned Standing Counsel relied on Commissioner of Sales Tax, U.P. v. Sarin Textile M....

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.... can be used only for rope-making and not for weaving. This is how the learned Standing Counsel contends that the coir yarn cannot be yarn within the meaning of the entry reproduced above from the notification. I do not see much force in the submission of the Revenue. The Supreme Court has laid down that the description of "yarn" must have two characteristics: (1) that it should be a spun stran....

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....inding has been given by the Tribunal on that score, but it is a matter of common knowledge that now-a-days, coir industry in South has been producing very attractive and fancy coir matting in which nothing but coir yarn is used and, therefore, it cannot be said that coir yarn is not used in weaving. Weaving does not mean the weaving of fine fabric by cotton or silken thread made of fine yarn only....