DEPUTY COMMISSIONER, SALES TAX (LAW) BOARD OF REVENUE(TAXES vs PIO FOOD PACKERS

The Supreme Court held that under Section 5A(1)(a) of the Kerala General Sales Tax Act, 1963, the processing of pineapple into canned slices does not constitute consumption of the original fruit for manufacturing purposes. The Court established that there must be a distinct change in identity for a commodity to be considered consumed in manufacture, and in this case, canned pineapple retains its identity as pineapple. The appeal was dismissed, affirming the Tribunal's order that the processed product is not a different commercial commodity despite its higher market price.