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TMI Blog1983 (9) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 5(3) of the Central Sales Tax Act. The assessing authority found that the goods were not actually exported to foreign country by the assessees and that therefore they were not entitled to claim the exemption. On appeal, the Appellate Assistant Commissioner also held that the goods were not actually exported, but had been moved from this State to another State and the assessees being the last purchasers of the goods in question, the assessing authority had rightly assessed the purchase turnover of the assessees at 5 per cent. The assessees took the matter in appeal to the Sales Tax Appellate Tribunal contending that the frog legs purchased by them had been exported through their exporting agents, Messrs. Associated Food Packers, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the ore blended in the course of loading through the mechanical ore handling plant can be said to undergo processing when it is blended. The answer to this question depends upon what is the true meaning and connotation of the word 'processing' in section 8(3)(b) and rule 13. This word has not been defined in the Act and it must therefore be interpreted according to its plain natural meaning. Webster's Dictionary gives the following meaning of the word 'process': 'to subject to some special process or treatment, to subject (especially raw material) to a process of manufacture, development or preparation for the market, etc., to convert into marketable form as livestock by slaughtering, grain by milling, cotton by spinning, milk by pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed should be taken to have undergone change before they were actually sold for export. It is no doubt true that in the present case the evidence is that the frog legs had been cut, cleaned and freezed before they were actually sold for export. Even if the treatment given to the frog legs purchased, which is more in the nature of a minimum preservative process, can be taken to be "processing ", the question still to be considered is, whether the goods purchased have undergone such a change as to result in the conversion of the goods purchased into a commercially different commodity. The question before us is not as to whether any change is brought about in the nature and character of the goods by the operation of cutting, cleaning and freez ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid decision, the Supreme Court in Chowgule & Co. P. Ltd. v. Union of India [1981] 47 STC 124 at 130 (SC) proceeds to say as follows: "The test that is required to be applied is: does the processing of the original commodity bring into existence a commercially different and distinct commodity? On an application of this test, it is clear that the blending of different qualities of ore possessing differing chemical and physical composition so as to produce ore of the contractual specifications cannot be said to involve the process of manufacture, since the ore that is produced cannot be regarded as a commercially new and distinct commodity from the ore of different specifications blended together. What is produced as a result of blending is c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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