DEPUTY COMMISSIONER OF SALES TAX LAW BOARD OF REVENUE TAXES ERNAKULAM Vs. SHIPHY INTERNATIONAL ALLEPPEY

JUDGEMENT

(1.) Special leave granted.

(2.) This is an appeal against the judgment and order of the High Court of Kerala dated 10th of November, 1986. By the impugned judgment the High Court has dismissed the Tax Revision Case filed at the instance of the Sales Tax authority. The assessee-respondent herein had purchased fresh frog legs and after removing the skin, washing and removing dirt etc. and freezing it for the purpose of avoiding decomposition and decay, the said frog legs were exported. The assessee claimed that they were entitled to the benefit of Section 5(3) of the Central Sales Tax Act, 1956.

(3.) In order to appreciate the question it is necessary to refer to the findings of the Tribunal. The Tribunal found that what was purchased by the assessee was fresh frog legs and, after freezing it for the purpose of avoiding decomposition and decay, it was exported. It was, therefore, held by the Tribunal that what was purchased as fresh frog legs was exported by the assessee. It was contended on behalf of the State that what was purchased was fresh frog legs and the same was not exported as such without freezing it. The Tribunal held that only frozen frog legs were exported. Therefore, it followed that what was purchased and exported was one and the same commodity. The frozen frog legs did not undergo, any material change in character. The identity of the frog legs remained unchanged as such. In that view of the matter the Tribunal held that the assessee was entitled to the benefit of Section 5(3) of the aforesaid Act. The High Court accepted this view.