TaxTMI 
TaxTMI 
1981 (10) TMI 151
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....in the identity to attract liability as a distinct separate goods at the point of sale under the Orissa Sales Tax Act, 1947? (2) Whether, on the facts and in the circumstances of the case, the Additional Sales Tax Tribunal is justified to annul the tax levied in respect of siali khallis prepared out of siali leaves on which purchase tax has been paid?" 2.. The assessee is a registered dealer under the Act and dealt inter alia in siali leaves during the period ending 1966-67. He purchased siali leaves and paid tax on the purchased turnover. On a finding that the assessee had, after purchase of siali leaves, pinned them up and had sold them as siali khallis and thus had converted siali leaves into a new commodity, the assessing officer levi....
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....ch of three learned judges of the Supreme Court in the case of Deputy Commissioner of Sales Tax, Ernakulam v. Pio Food Packers [1980] 46 STC 63 (SC); AIR 1980 SC 1227 had rightly indicated the guideline. The court in that case was considering whether whole pineapples when converted into canned pineapple slices constituted a different commodity. The court observed: "6. A large number of cases has been placed before us by the parties, and in each of them the same principle has been applied: Does the processing of the original commodity bring into existence a commercially different and distinct article? Some of the cases where it was held by this court that a different commercial article had come into existence include Anwarkhan Mehboob Co. v....
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....al sweetness in the canned pineapple arises from the sugar added as a preservative. On a total impression, it seems to us, the pineapple slices must be held to possess the same identity as the original pineapple fruit." The court then referred to some American precedents and proceeded to say: "........ Although a degree of processing is involved in preparing pineapple slices from the original fruit, the commodity continues to possess its original identity, notwithstanding the removal of inedible portions, the slicing and thereafter canning it on adding sugar to preserve it. It is contended for the revenue that pineapple slices have a higher price in the market than the original fruit and that implies that the slices constitute a different ....