Purchase tax on slaughtered meat sale fails where processing only makes goods marketable, not manufactured into a different product.

Slaughtering goats and sheep and selling the meat does not amount to consumption of purchased goods in the manufacture of other goods for purchase tax under section 5A of the Kerala General Sales Tax Act. The process was only slaughtering and cutting the live animal into meat for sale, which did not change the essential commercial identity of the goods; it merely made them marketable. By analogy with dressing poultry or cutting logs, the original goods remained the same and no manufacture of a different product occurred, so purchase tax was not attracted on that turnover.

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Issues: Whether slaughtering goats and sheep and selling the resulting meat amounts to consumption of goods in the manufacture of other goods so as to attract purchase tax under section 5A of the Kerala General Sales Tax Act.

Analysis: Liability under section 5A arises only where purchased goods are consumed in the manufacture of other goods. The process involved here was only slaughtering and cutting the live animal into meat for sale. Such processing did not change the essential identity of the goods in the commercial sense and amounted only to making them marketable. The transaction was analogous to dressing a chicken or cutting logs from trees, where the original goods remain the same and there is no manufacture of a different .

Conclusion: Slaughtering goats and sheep for sale as meat does not amount to consumption in the manufacture of other goods under section 5A, and the assessee is not liable to sales tax on that turnover.

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