Processed prawns and lobsters retained their original identity, so the sales tax export exemption remained available.

Cleaning, cutting, sizing, packaging, or similar processing of prawns and lobsters did not create a new commercial commodity because the goods retained their essential identity despite the operations performed. On that basis, the exemption under section 5(3) of the Central Sales Tax Act, 1956 remained available, since mere processing without emergence of a distinct commercially recognised product does not alter the character of the original goods for sales tax purposes.

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Issues: Whether prawns and lobsters cleaned, cut, sized, packaged, or otherwise processed for sale or export cease to retain their original character and become a new commercial commodity, and whether exemption under section 5(3) of the Central Sales Tax Act, 1956 is available.

Analysis: The processing of prawns and lobsters was held not to bring into existence a new commodity. The goods remained the same commercial commodity despite cleaning, cutting, sizing, packaging, or similar operations. The reasoning adopted the principle that mere processing without emergence of a distinct commodity does not alter the essential identity of the goods for sales tax purposes.

Conclusion: The processed prawns and lobsters did not become a different commercial commodity, and the exemption under section 5(3) of the Central Sales Tax Act, 1956 was upheld.

Ratio Decidendi: Where processing does not result in the emergence of a commercially distinct commodity, the original goods retain their identity for tax purposes.

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