GULATI, J. - (1.) IN these three connected cases the common question of law that arises is as to whether the turnover of woollen yarn manufactured by the assessee should be taxed under section 3 at the rate of 2 per cent. or should be assessed as "yarn" or "woollen goods" under the notifications issued under section 3-A. If it is assessable as yarn, its turnover would be assessable at the rate of six pies per rupee for the assessment year 1959-60 and at the rate of 3 per cent. for the year 1961-62 and if it is covered by the term "woollen goods" then it would be assessable at the rate of one anna per rupee. The notifications with which we are concerned are : (i) Notification No. ST. 907/X dated 31st March, 1956. This is a notification under section 3-A of the Act and declares that the turnover of certain commodities mentioned therein should be taxed at a single point, at the point of sale by the manufacturer or the importer, at the rate of six pies per rupee. The relevant entry of that notification is at item No. 4 which reads : "Yarn of all kinds, including unspun fibre used in weaving, other than handspun yarn, but excluding cotton yarn in cops and cones." (ii) Notification No. ST-1365/X-990-1956 dated 1st April, 1960. It is also a notification under section 3-A of the Act and the relevant entry is at item No. 33 which reads : "Yarn of all kinds including unspun fibre used in weaving other than handspun yarn but excluding cotton yarn." (iii) Notification No. ST-905/X dated 31st March, 1956. This again is a notification under section 3-A of the Act and the rate of tax is one anna per rupee. The relevant entry is at item No. 46 which reads : "Woollen goods excluding carpets but including knitting wool."
(2.) THE assessee is engaged in the business of manufacture and sale of woollen carpet yarn or kati. There is no dispute about the quantum of the turnover. The dispute relates only to the rate of tax. The assessee's contention was that the carpet yarn or kati was an unclassified item not covered by any of the notifications referred to above and its turnover was therefore assessable under section 3 at multiple point at the rate of 2 per cent. The Sales Tax Officer, however, did not agree with this contention and held that the commodity in question was yarn and assessed its turnover at the rate of 6 pies per rupee for the assessment year 1959-60 and at the rate of 3 per cent. for the year 1961-62 as prescribed in notifications 1 and 2 referred to above. On appeal it was contended on behalf of the department that either the notifications Nos. 1 and 2 applied or the notification No. 3 was applicable. The Assistant Commissioner (Judicial) however, did not accept this contention and held that none of the notifications applied and the turnover in dispute was assessable under section 3 as being the turnover of an unclassified item. This finding of the Assistant Commissioner (Judicial) has been upheld by the Judge (Revisions). At the instance of the Commissioner, however, the Judge (Revisions) has submitted the two references for the opinion of this court on the following question of law : "Whether the article 'carpet woollen yarn' is covered by the term 'yarn' mentioned in item No. 4 of Notification No. ST-907/X dated 31st March, 1956, and item No. 33 of Notification No. ST-1365/X dated 1st April, 1960, taxable as 6 pies and 3 pies per cent. respectively or a kind of woollen goods as mentioned at item No. 45 taxable at one anna per rupee according to Notification No. ST-905/X dated 31st March, 1956, or whether it is an unclassified item taxable at 2 per cent."
(3.) THE first question that arises is as to whether the commodity in dispute is woollen yarn and, if so, whether it is covered by the notifications Nos. 1 and 2 referred to above. It would be noticed that there is no material difference for the purposes of the question referred in the notification Nos. 1 and 2 except the difference in the rate. The term "yarn" has not been defined in the Act. The Assistant Commissioner (Judicial) has quoted the meanings of this term as given in various dictionaries as below : "Any textile fibre prepared for weaving into cloth" (Imperial Dictionary). "Any spun thread specially of kinds prepared for weaving, knitting or rope-making." (Oxford Dictionary). "Spun wool, woollen thread, the name is also given to other species of threads as of cotton, silk etc. Any textile fibre prepared for weaving into cloth." "In rope-making one of the threads of which a rope is composed." (Webster's Dictionary). ;