M/S. K.G.F. Cottons (P) Ltd. Cotton ... vs The Assistant Commissioner (Ct) Ltu, ... on 4 March, 2015
75. Raw cotton undergoes various processes before cloth is
finally turned out. Cotton is cleaned, carded, spun into yarn, then
cloth is woven, put on rolls, dyed, calendered and pressed. (J.K.
Cotton Spg. & Wvg. Mills v. Sales Tax Officer ). Declared
goods", in Section 14 of the CST Act, are individually specified
under separate items. All kinds of cotton, whether ginned or
unginned, baled, pressed or otherwise, fall under a single species
of declared goods under Section 14(ii) of the CST Act. In terms of
Section 15(a) of the CST Act, the tax payable under the Act, in
respect of the sale or purchase of declared goods inside the State,
shall not exceed 4%/5% of the sale or purchase price thereof.
Cotton, whether ginned or unginned, is treated as a single
commodity or a single species of declared goods and cannot,
therefore, be subjected to tax exceeding the rate prescribed in
Section 15(a) of the CST Act on both the sale and purchase price
and, prior to its amendment, at not more than one stage.