DY. COMMISSIONER OF SALES TAX (LAW), BOARD OFREVENUE(TAXES, vs COCO FIBRES

The Supreme Court examined whether coconut fibre, produced from coconut husks, constitutes a separate commercial commodity under the Kerala General Sales Tax Act. The Court held that manufacturing involves producing a new entity that is commercially distinct from the raw material, which in this case is coconut husk. Since coconut fibre was deemed a separate product capable of being sold independently, the Court ruled in favor of the Revenue, affirming that the value of coconut husks converted into fibre should be included in taxable turnover. The decision clarified the criteria for distinguishing raw materials from manufactured commodities for tax purposes.