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TMI Blog2003 (4) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... ty eligible for exemption under Central Sales Tax Act, 1956. 3.. The learned Counsel Mr. R.L. Ramani, appearing for the appellant has contended that the appellant has purchased rough granite blocks and sold the same to the exporters for export. The exporters have purchased rough granite blocks from the appellant and exported sized and polished granite slabs. The granite does not loose its identity due to sizing and polishing. Still it remains as granite and they are not different commercial commodities. Hence, they are eligible for exemption under section 5(3) of the Central Sales Tax Act of 1956. 4.. The assessing authority in his order dated August 30, 1996 has stated that the appellant has purchased rough granite blocks from other Stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the appellants. Hence, the exemption claimed by the appellant under the Tamil Nadu General Sales Tax Act, 1959, is also acceptable and set aside the order passed by the assessing authority. 7.. The Joint Commissioner (C.T.) (SMR) in reference No. M3/ 61636/97 dated September 8, 1998 has stated that the commodity sold by the appellant is rough granite but the commodity exported is polished granite which is a different commodity. In view of the specific entry in item 30 of Part D with effect from March 12, 1993, they are two different commodities; (a) 30 (i) Granite blocks; (b) 30 (ii) Polished granite slabs....... 8.. The Joint Commissioner has classified the granite blocks and polished granite slabs as different entries and held bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oose its identity due to the sizing and polishing, etc., and still it remains as granite. Hence, the unpolished and polished granites cannot be treated as different commercial commodities in the case on hand and the rough granite blocks sold by the appellant are cut into standard sizes through sawing machine (for sawing they are using lime powder, water and steel granites. These are mixed up in the form of slurry and poured on the slabs using the slurry as cutting media. The water and lime are used to get powdered in the process and is washed of and then the slabs are polished on one side by using the abrasives). The above activities cannot be construed as manufacturing. The cutting and polishing of granite slabs will not alter the commerc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place at the end of the importer who would cut it to shapes and sizes according to the use to which it is to be put. Final polishing cannot be given before exporting the blocks." The Madras High Court in the case of Coffee Board reported in [1991] 80 STC 199 has held that: "If after converting the coffee seeds into powder so long as it is not subjected to some chemical or other process or some other element is added to it so as to make a different product, it retains its original character but changes only its form. If still retains its identity what was in the form of seeds had merely become powder. The term 'coffee powder' answers fully the description of the expression 'those goods' occurring in section 5(3) of the Act though it has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant and commodity exported by the buyer were rough granite only. The appellant had sold rough granite blocks which were cut into sizes and polished by one side by the exporters. Such cutting and polishing of granite blocks will not alter the commercial character of the goods. Therefore, the goods exported by the buyers are the same goods as purchased from the appellant. 13.. On the other hand, the Learned Senior Standing Counsel has contended that rough granite blocks are different from polished granite slabs and the export sales are not exempted from tax. To strengthen his arguments the Learned Senior Standing Counsel has relied on the decision in the case of Vasantham Foundry v. Union of India reported in [1995] 99 STC 87 (SC) wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decided that the end-product be it a pipe or a man-hole cover is a different commodity and hence not a declared goods. But in the case on hand, out of the rough granite stone the exporter has only cut the bigger blocks into smaller sizes for which lime powder and steel granite are used. But these lime powder, water and steel granite get washed away and thereafter the granite is polished. This cutting and polishing is necessary in order to make the granite fit to be introduced in the export market. The nature of the activities undertaken by the exporters is similar to the activities undertaken by various assessees in the different cases relied by the appellant wherein the apex Court and the High Court have very clearly held that despite such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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