TMI Blog1967 (8) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... d it is the legality of the assessment of such turnover that is questioned before us In these two revision cases. 3.. It is common ground that the petitioners purchased the two component parts which went to make the chappals, namely, the foam rubber soles and the strap mouldings from manufacturers within the State and that sales tax had been levied on the sales of such parts effected by the manufacturers to the petitioners. 4.. Under section 5(vii) of the General Sales Tax Act, 1125 (Act 11 of 1125), which is the relevant statute governing these cases, the sale of goods specified in column (2) of Schedule I shall be liable to tax only at such single point in the series of sales by successive dealers as may be specified by the Government ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he view of the assessing authorities, the finished product, namely, the chappal, sold by the petitioners had a distinct commercial identity of its own, different from that of the soles and strap mouldings purchased by the petitioners and that, therefore, it could not be said that the disputed turnover relating to sales of the same rubber product which had been purchased by the petitioners from the manufacturers under sales already subjected to tax. The assessing officers accordingly held that the sales of chappals effected by the petitioners were the first sales within the State of that particular commodity and were, therefore, liable to be taxed. The assessments were confirmed by the Appellate Assistant Commissioners and also by the Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he U.S. Supreme Court in East Texas Lines v. Frozen Food Express351 U.S. 49; 100 L. Ed. 917. , in support of his contention that the soles and straps purchased by his clients cannot be regarded as having ceased to be the same rubber products even after they were assembled into chappals. Under section 203(b)(6) of the Federal Motor Carrier Act, motor vehicles used in carrying property consisting of agricultural commodities (not Including manufactured products thereof) were exempted from the scope of the Regulatory provisions of Part II of the said Act subject to certain conditions. Construing this provision, the U.S. Supreme Court held that the exemption extends to vehicles carrying fresh or frozen dressed poultry. The Court expressed the vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... offee" and "iron and steel" occurring in the concerned statutes governing those cases and they are not therefore of any assistance to the petitioners. 9.. Another decision relied on by the learned counsel for the petitioners is the ruling of our Supreme Court reported in Tungabhadra Industries Ltd. v. Commercial Tax Officer[1960] 11 S.T.C. 827., wherein it was held by their Lordships that hydrogenated groundnut oil continued to be 'groundnut oil" notwithstanding the processing which was done merely for the purpose of rendering the oil more stable. Their Lordships pointed out that the hydrogenated oil was extracted from groundnut and that even after hydrogenation no change had occurred in its essential nature and it remained an oil. In rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Madras[1964] 15 S.T.C. 719., the Supreme Court had to consider the question whether tanned hides and skins are different commodities from raw hides and skins and whether they could be validly treated as different goods for the purposes of the Madras General Sales Tax Act. Their Lordships answered the question in the affirmative on the ground that "hides and skins In the untanned condition are undoubtedly different as articles of merchandise than tanned hides and skins". Reference may also be made to State of Travancore-Cochin v. S.V.C. Factory[1953] 4 S.T.C. 205., in which the Supreme Court held that raw cashewnuts become a different commodity commercially after the application of certain process as a result of which they are converted i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n dealing in footwear or a consumer purchasing such goods would understand the word "chappal" to mean either the sole or the strap by itself. Though the chappal is an article consisting of a combination of the strap moulding and the rubber sole, it is commercially distinct from those parts or ingredients and has an identity of its own as a well-known variety of footwear. When the strap and the sole are combined and sold as chappal, the produce is a different entity and has a new identity. 12.. There is also the further fact that the straps as well as the soles are commodities saleable as such in the market. The petitioner in T.R.C. No. 125 of 1966 has himself effected several sales of cutsoles and straps as such during the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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