M/S.Mamta Surgical Cotton Industries vs Asstt. Commnr.(Anti-Evasion), ...

The Supreme Court upheld the High Court's decision that 'surgical cotton' is a distinct commercial commodity from 'cotton' under the Rajasthan Sales Tax Act, 1994. The Court affirmed the Rajasthan Tax Board's conclusion that surgical cotton is subject to a 4% tax, rejecting the appellant's claim that the transformation process does not create a new commodity. The ruling clarifies the interpretation of 'manufacture' under the Act, confirming the tax liability on surgical cotton as separate from raw cotton.