M/S.MAMTA SURGICAL COTTON INDUSTRIES vs ASSTT. COMMNR.(ANTI-EVASION), BHILWARA

The Supreme Court upheld the Rajasthan Tax Board's decision that 'surgical cotton' is a distinct commercial commodity from 'cotton' under the Rajasthan Sales Tax Act, 1994. The Court clarified that the process of transforming cotton into surgical cotton constitutes 'manufacture' as defined in the Act, thus making it liable for separate taxation at 4%. The Court affirmed the Board's ruling, rejecting the appellant's claim that surgical cotton is merely another form of cotton.