TMI Blog1990 (11) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... chedule to the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as "the Act"). 2.. The assessee purchased paper from the Seshasayee Paper and Boards Limited, paying sales tax as per the same entry 117 and converted the said paper into waterproof paper by coating bitumen or wax between two sheets of paper and sold it. The assessee's contention is that the sale of the abovesaid bituminised or wax coated paper was only a second sale of paper and could not be taxed once again. But the Board of Revenue held as follows: "Inasmuch as the product purchased by the assessee had undergone a change and is known and understood as a different product in trade circles, it cannot be claimed that the sale by the assessee was a second sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts v. Government of India), is a decision relating to levy of excise duty and that the question there was whether there was "manufacture" within the meaning of excise law, when paper was converted into such bituminised waterproof paper. It was no doubt held there, that there was no manufacture involved in the said process relying on the following passage in South Bihar Sugar Mills Ltd. v. Union of India AIR 1968 SC 922: "The word 'manufacture' implies a change but every change in the raw material is not manufacture. There must be such a transformation that a new and different article must emerge having a distinctive name, character or use. The duty is levied on goods..................." This Court in the above referred to [1980] TLNJ 39 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of different commercial commodities and not to tax the production or manufacture of particular substances out of which these commodities may have been made. As soon as separate commercial commodities emerge or come into existence, they become separately taxable goods or entities for purposes of sales tax. Where commercial goods, without change of their identity as such goods, are merely subjected to some processing or finishing or are merely joined together, they may remain commercially the goods which cannot be taxed again, in a series of sales, so long as they retain their identity as goods of a particular type. " 5.. No doubt in State of Tamil Nadu v. East India Rubber Works [1974] 33 STC 399, this Court has held that waterproof clot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, "declared goods" and are not liable to additional sales tax and surcharge under the Kerala General Sales Tax Act, 1963. There, the Supreme Court has observed as follows: "The purpose of galvanising a steel pipe is merely to make it weatherproof. It remains a steel tube. By being put through the process of galvanising it is made rust-proof. The limited purpose of galvanisation does not bring a new commodity into existence. Neither its structure nor function is altered. As a commercial item it is not different from a steel tube." In deciding the said case, dealing with the abovesaid [1980] 46 STC 22 (Mad.) (Deputy Commissioner of Commercial Taxes v. Mohammed Ibrahim Marakayar Sons) the Supreme Court also observed as follows: "We are una ..... X X X X Extracts X X X X X X X X Extracts X X X X
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