M/s.Shafeeq Shammel & Company v. Asstt. Commnr., Commercial Taxes (SC) BS187251
SUPREME COURT OF INDIA

Before:- B.N. Balakrishnan, K.G. Balakrishnan and Arijit Pasayat, JJ.

Civil Appeal Nos. 6272-6275 of 2001. D/d. 22.7.2002.

M/s.Shafeeq Shammel & Company - Appellant

Versus

Asstt. Commnr., Commercial Taxes & Ors. - Respondents

Central Sales Tax Act, 1956, Section 5(3) - Applicability of provisions - Requirement - Purchase of raw hides and skins by appellant Tanned or dressed hides and skins after their processing were exported - Benefit of Section 5(3) - Entitlement for - Held that appellant is entitled to benefit of Section 5(3) - Section 5(3) could be applicable where goods sold or purchased have not undergone any transformation - Raw hides and skins purchased by appellant not the same which are exported therefore, Section 5(3) will have no application.

[Para 1]

Cases Referred :-

TVL K.A.K. Anwar v. State of T.N., 1998 (1) SCC 437.

ORDER

B.N. Balakrishnan, J. - In the instant case, the appellant purchases raw hides and skins which are then processed and the tanned or dressed hides and skins are then exported. The appellant contends that it is entitled to the benefit of Section 5(3) of the Central Act. This Court in TVL K.A.K. Anwar and Co. v. State of T.N., 1998 (1) SCC 437 has categorically held that dressed hides and skins are different goods from raw hides and skins. Section 5(3) would be applicable where the goods which are sold or purchased have not undergone any transformation. In the instant case what is purchased by the appellant are raw hides and skins and it is not the same goods which are exported. Those raw hides and skins are then processed and it is the dressed hides and skins which are exported. Therefore, Section 5(3) will have no application. The appeals are dismissed.

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