The words "those goods" in section 5(3) of the Central Sales Tax Act do not mean and refer to the goods sold or purchased preceding the sale or purchase occasioning the export, in the same condition as it was when so purchased or sold immediately before export so long as the identity of the goods is not altered bringing into existence a new commercial product of different character and property.

RAJU, J.

The unsuccessful assessee is the appellant before us. The above tax case has been filed against the order of the Sales Tax Appellate Tribunal, Madras, dated 8th June, 1981 made in T.A. No. 1217 of 1980 in common with certain other similar cases.

2. The petitioners are dealers in hides and skins. For the assessment year 1978-79, they filed A1 return declaring a total and taxable turnover of Rs. 4, 23, 96, 766.15 and Rs. 6, 50, 297.60, respectively. After the examination of their accounts, the assessing authority proposed to determine the total turnover at Rs. 50, 66, 419.58 and the taxable turnover at Rs. 44, 01, 107.23 for the said assessment year. To the proposals, the assessee submitted its objections. It was the contention of the assessee that they purchased raw skins to the tune of Rs. 22, 13, 372.89 only for export and such raw skins were processed into dressed skins and exported in fulfilment of their foreign contracts and consequently and said turnover was eligible for exemption having regard to section 5(3) of the Central Sales Tax Act, 1956. In respect of certain other items of turnover also, they opposed the proposals of the assessing authority which need not detain us further by going into the details. The assessing authority, by its order dated 30th August, 1980, came to the conclusion that the raw and tanned skins are conmercially different commodities, that, therefore, what they had purchased is different from what they had exported and consequently, the exemption claimed as above was rejected. The total and taxable turnover were fixed at Rs. 50, 66, 419.58 and Rs. 38, 47, 256.55, respectively and assessed to tax of Rs. 99, 078.85. So far as the raw hides and skins locally purchased by them are concerned, the same were subjected to tax at 3 per cent.

3. Aggrieved, the assessee filed an appeal before the first appellate authority and contended that under the Central Sales Tax Act, hides and skins whether in a raw or dressed state, are classified as one category under section 14(iii) of the said Act. The first appellate authority also was of the view that raw hides and skins purchased by the assessee were not exported in the same form, that they were converted into tanned items and consequently the goods exported were different from the goods purchased and, therefore, the levy under item 7(a) of the Second Schedule to the Tamil Nadu General Sales Tax Act, 1959, was in order and calls for no interference. On further appeal to the Tribunal, the Tribunal confirmed the orders of the authority below and in doing so, the Tribunal applied the decision of a Division Bench of this Court in T.C. Nos. 824 to 827 of 1980 dated 21st January, 1981, wherein it was held that where the petitioner purchased raw hides and skins and converted them into dressed hides and skins, the same did not satisfy the requirements of section 5(3) of the Central Sales Tax Act for the reason that the goods exported and those purchased were different ones. Hence the above revision before us.

4. Mr. C. Natarajan, learned counsel appearing for the petitioner, while reiterating the contentions which failed before the authorities below, submitted that having regard to the provisions of section 5(3) read with sections 14 and 15 of the said Act, the fact that raw hides and skins and dressed hides and skins are commercially different commodities was totally irrelevant for purposes of exemption claimed under section 5(3) of the Act, since the Central Act treats hides and skins, whether in a raw or dressed state, as a single item and they must be understood as the same goods for purposes of section 5(3) of the Central Sales Tax Act also and consequently the turnover to the tune of Rs. 22, 13, 372.89 was eligible for exemption from taxation under the Tamil Nadu General Sales Tax Act, 1959. It was submitted that the principle laid down in T.C. Nos. 824 to 827 of 1980 dated 21st January, 1981 is opposed to the radio of another Division Bench dec