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1990 (12) TMI 83 - SC - VAT and Sales TaxWhether coconut fibre is a separate entity from the husk in the commercial parlance? Held that:- the article that emerged, as a result of the process of manufacture, must be a distinct and new article recognised or known as such in the commercial parlance for sale or supply. In view of the admitted position that green husk is soaked into saltish sea water for days together and after decomposition, on being subjected to beating either by manual or mechanical process, fibre is produced in the process, which is a distinct commodity known in the commercial parlance. Accordingly, we hold that the coconut fibre is commercially a different identifiable commodity known as such in the commercial parlance. The value of sale or purchase of coconut husk would attract purchase tax under Section 5-A of the Act. Appeal allowed.
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