SALES TAX COMMISSIONER, U. P. vs M/S. LADHA SINGH MAL SINGH

The Supreme Court held that cloth manufactured using power looms qualifies as 'cloth manufactured by mills' under Section 3A of the U.P. Sales Tax Act, 1948, thus attracting a sales tax rate of 6 pies per rupee. The Court distinguished between loom-made and mill-made cloth, emphasizing that the energy source (manual or power) does not alter the fundamental nature of the cloth produced. The High Court's interpretation that only cloth from traditional mills qualifies was overturned, affirming that looms, regardless of their power source, constitute mills for tax purposes.