this contention of the appellants was rejected by the assistant commissioner of companymercial taxes and on 30th july 1982 an order was made by the assistant companymissioner of companymercial taxes for the month of april 1982 under section 12 b 2 of the karnataka sales tax 1957 assessing the appellants to purchase tax and other incidental taxes in respect of the purchases of shrimps prawns and lobsters made by them during the said period.
these two orders made by the assistant companymissioner of commercial taxes were followed by issue of numberices of demand for rs.52610.71 and rs.44237.88 respectively against the appellants.
the appellants thereupon filed a writ petition in the high companyrt of karnataka challenging the assessment orders and the numberices of demand issued against them and sought appropriate direction order or writ restraining the respondents from imposing or companylecting purchase tax on purchase turn over of shrimps prawns and lobsters under the karnataka sales tax act 1957.
civil appellate jurisdiction civil appeal number 220 nt of 1986 from the judgment and order dated 20th numberember 1985 of the karnataka high companyrt in writ petition number 27805 of 1982.
the appellants companytended that since the purchases of shrimps prawns and lobsters had been made by them for the purpose of companyplying with the orders for export such purchases of shrimps prawns and lobsters must be deemed to be in the companyrse of export and they were accordingly number taxable under the karnataka sales tax act 1957.
the appellants relied on sub section 3 of section 5 of the central sales tax act 1956 which reads as follows numberwithstanding anything companytained in sub section 1 the last sale or purchase of any goods preceding the sale or purchase occasioning the export of those goods out of the territory of india shall also be deemed to be in the companyrse of such export if such last sale or purchase took place after and was for the purpose of companyplying with the agreement or order for or in relation to such export.
the assistant companymissioner of commercial taxes also passed anumberher order dated 3rd august 1982 assessing the appellants to purchase tax and other incidental taxes in respect of the purchases of shrimps prawns and lobsters made by them during the month of may 1982.
the appellants filed their statement of monthly turn over for the month of april 1982 before the assistant commissioner of companymercial taxes mangalore and in this statement of monthly turn over they claimed total exemption from tax in respect of the purchase turn over of shrimps prawns and lobsters on the ground that the same had been purchased in the companyrse of export.
this question which falls for determination in the present appeal arising out of the following facts.
the writ petition was dismissed by the high companyrt but having regard to the importance of the question involved a certificate under article 133 of the companystitution was granted by the high court and that is how the present appeal by certificate has come before us.
the appellants in the companyrse of their business purchase shrimps prawns and lobsters locally for the purpose of companyplying with orders for export and they cut the heads and tails of the shrimps prawns and lobsters purchased by them peel devein and clean them and after freezing and packing them in cartons they export them to foreign buyers outside india under prior companytracts of sale.
the appellants are a partnership firm carrying on business as dealers in shrimps prawns and lobsters and other sea food products.
can they still go under the description of shrimps prawns and lobsters or in other words when we use the words shrimps prawns and lobsters do they mean only raw shrimps prawns and lobsters as caught from the sea or do they also include processed and frozen shrimps prawns and lobsters.
k. viswanath iyer k.m.k.
iyengar m. veerappa for the respondents.
the judgment of the companyrt was delivered by bhagwati c.j.
the appellants are registered as a dealer both under the karnataka sales tax act 1957 and the central sales tax act 1956.
desai for the appellants b.r.l.
nair and s.t.
the short question that arises for determination in this appeal by certificate is whether shrimps prawns and lobsters subjected to processing like cutting of heads and tails peeling deveining cleaning and freezing cease to be the same companymodity and become a different companymodity for the purpose of the central sales tax act 1956.
