2003 (4) TMI 509 - AT - VAT and Sales Tax

Summary

Issues involved:
1. Determination of whether polished granite exported and rough granite sold are the same commodity eligible for exemption under Central Sales Tax Act, 1956.

Detailed Analysis:

Issue 1: Determination of commodity identity for tax exemption
- The appellant contended that rough granite blocks sold and polished granite exported are the same commodity eligible for exemption under the Central Sales Tax Act, as the identity of granite remains unchanged after cutting and polishing.
- The assessing authority denied the exemption, stating that the goods sold were not exported as they were purchased, leading to an appeal before the Appellate Assistant Commissioner.
- The Appellate Assistant Commissioner relied on precedents to support that cutting and polishing of granite slabs do not alter the commercial character, thus accepting the exemption under the Tamil Nadu General Sales Tax Act.
- However, the Joint Commissioner classified rough granite blocks and polished granite slabs as different commodities under specific entries, overturning the Appellate Assistant Commissioner's decision.
- The appellant argued that the cutting and polishing processes do not change the commercial character of the goods, citing various cases and judgments in support of their stance.
- The appellant emphasized that the activities undertaken by exporters are similar to those in previous cases where the commodity identity remained unchanged despite processing.
- Ultimately, the Tribunal allowed the Tax Case Appeal, endorsing the appellant's position that the rough granite blocks sold and polished granite exported are the same commodity, thus qualifying for the exemption under section 5(3) of the Central Sales Tax Act.

This comprehensive analysis delves into the core issue of commodity identity for tax exemption, highlighting the arguments presented by both parties and the legal precedents cited to support their respective positions. The judgment ultimately resolves the dispute by affirming the appellant's contention that the rough granite blocks sold and polished granite exported are indeed the same commodity eligible for exemption under the Central Sales Tax Act.