1990 (7) TMI 360

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....he Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as "the Act"). 3.. The finding of the Tribunal is as follows: ".......It is found that the appellant had effected purchase of timber, sliced the same into splints and sold the splints to various dealers among the match manufacturers. Hence, we are of the view that provisions of section 7-A cannot be applied to the purchase turnover of timber and accordingly we set aside the assessment of the purchase turnover........" It may be mentioned that the splints sold to various match manufacturers have been subjected to tax and that is not disputed before us. The contention of the Revenue seems to be that the purchase of timber for obtaining splints should be subjected to p....

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....hstanding the removal of inedible portions, the slicing and thereafter canning it on adding sugar to preserve it." The test laid down by the Supreme Court in that case appears to be that when there is no essential difference in identity between the original commodity and the processed article, it is not possible to say that one commodity has been consumed in the manufacture of another.   6. In State of Tamil Nadu v. Subbaraj and Co. reported in [1981] 47 STC 30 (Mad.), Ismail, C.J., as he then was, speaking for the Bench, while considering the scope of section 7-A(1)(a) held as follows: "Held, that with regard to the purchases of raw bones and the end-products which were sold locally, the Tribunal was right in holding that sec....