Commercial identity in export processing: laminated and printed aluminium foil still qualified for penultimate sale exemption.

Plain aluminium foil processed by laminating, printing and sizing for export retained its commercial identity and was not converted into a new commodity. On that basis, the penultimate purchase qualified for exemption under section 5(3) of the Central Sales Tax Act, 1956 because the goods exported remained the same goods purchased for export, despite processing done to meet foreign buyers' specifications. The dealer was also entitled, according to law, to the appropriate declaration forms for export turnover and to form XXIV-A for local sales turnover. The challenged orders were set aside to the extent necessary to grant the export exemption and consequential declaration relief.

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Issues: Whether plain aluminium foil purchased by the dealer remained the same goods after laminating, printing and sizing for export so as to attract exemption under section 5(3) of the Central Sales Tax Act, 1956; and whether the dealer was entitled to declaration forms for export turnover and for local sales turnover.

Analysis: The dealer purchased plain aluminium foil and subjected it to laminating, printing and sizing only to comply with foreign buyers' specifications before export. The material on record showed that the exported product was described as printed aluminium foil, but the processing did not create a commercially different commodity for the purposes of section 5(3). The controlling principle was that the last purchase preceding export must be of the same goods that are exported, and the statutory conditions were satisfied where the goods retained their identity despite processing carried out for export requirements. The Tribunal also distinguished the position of export turnover from local sales turnover, observing that the local sales of printed aluminium foil were not outside the State sales tax regime and that the dealer was entitled to the relevant declaration forms according to law.

Conclusion: The processing did not amount to manufacture of a new commercial commodity for section 5(3) purposes, and the dealer was entitled to exemption on the export-related last purchase of aluminium foil. The respondents were required to issue the appropriate declaration forms for export turnover and to issue form XXIV-A for local sales turnover according to law.

Final Conclusion: The application succeeded, the impugned orders were set aside to the extent challenged, and the dealer obtained the export exemption and consequential reliefs sought for declarations.

Ratio Decidendi: Where goods purchased for export retain their commercial identity despite processing undertaken solely to meet export specifications, the processed goods are treated as the same goods for section 5(3) of the Central Sales Tax Act, 1956, and the penultimate sale or purchase qualifies for export exemption.

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