Judgment :- K.K. Usha, J. The question for consideration arising in this original petition is whether the product obtained at the end of the process of latex concentration by using the methods of centrifuging is commercially a different product from the latex in its form as taken directly from the tree. 2. The petitioner is engaged in the processing and sale of centrifuged latex among other activities. Normal latex collected from the rubber tree is purchased by the company from rubber growers and the same is amoniated, preserved and later centrifuged with the aid of chemicals and centrifuging machines. The end product is used for manufacture of foam rubber and other industrial products and it is marketed in barrels. The petitioner had purchased empty drums for the purpose of storing centrifuged latex. It had issued in Form No. 18 declarations to the effect that the drums were for marketing the Company's finished products and by virtue of the provisions contained under S.5(7) of the Kerala General Sales Tax Act, sales tax is chargeable only at the concessional rate. The respondent had issued a notice on 26.06.1984 directing to show cause why penal action should not be initiated for misusing Form No. 18 declaration during the period 1982-83. Respondent had taken a stand that centrifuged latex is not finished products coming under the ambit of S.5(7) of the Kerala General Sales Tax Act. Thereafter a penalty was imposed on petitioner under S.45 A of the Act for improper use of the Forms. The above order was under challenge before this court in OP. No. 7711 of 1985. 3. For the assessment years 1983-84 to 1986-87 also the respondent issued notice to the petitioner alleging misuse of Form No. 18 in the matter of purchase of empty drums. Ext. P3 is the copy of the notice. Petitioner gave a reply Ext. P4 pointing out that centrifuged latex is entirely different from normal latex. Reliance was also placed on a notification issued by Government of India (Ministry of Finance) in exercise of its powers under sub-rule 1 of R.8 of the Central Excise Rules, exempting preserved latex, latex concentrate, smoke rubber sheet, crepe rubber and crump rubber under item No. 68 of the First Schedule to the Central Excise and Salt Act, 1944 from the whole of the duty of excise leviable thereon under S.3 of the said Act. It was contended that under S.3 duty is leviable on excisable goods which are produced or manufactured in India. Since centrifuged latex is an item manufactured or produced, in the normal course it would have been exigible to excise duty. It was under these circumstance, the notification dated 8.7.1983, copy of which is produced as Ext. P1 along with the original petition was happened to be issued. 4. It is contended by the petitioner that the two units belonging to the petitioner where centrifuged latex is carried on are registered as Small Scale Industrial Units as is evidenced by Exts. P5 and P6 Certificates. These certificates would also show that manufacturing process is carried on in these units, the product manufactured being latex concentrates and raw material latex. 5. It was contended on behalf of the petitioner that the principles laid down in the decisions interpreting the term 'manufacture' in connection with the provisions contained under Sales Tax Act; are directly applicable in the present case also so as to examine whether centrifuged latex would amount to finished products. On the basis of such contention, reliance was made by the petitioner on several decisions of the Supreme Court as well as other High Courts. In Ujagar Prints v. Union of India and others (1989) 170 ITR page 317, a Constitutional Bench of Supreme Court had occasion to consider the question whether the processes of bleaching, dyeing, printing, sizing, shrink-proofing etc., carried on in respect of cotton or man-made "grey fabric" amount to "manufacture" for purpose, and within the meaning of S.2(f), of the Central Excise and Salt Act, 1944 before and after its amendment by S.2 of the Amending Act VI of 1980. The general principle to be adhered to in such cases has been referred at page 341 of the above decision as follows: "'The prevalent and generally accepted test to ascertain whether there is "manufacture" is to find whether the change or the series of changes brought about by the application of processes take the commodity to the point where, commercially, it can no longer be regarded as the original commodity but is, instead, recognised as a distinct and new article that has emerged as result of the process". Agreeing with the earlier decision in Empire Industries Ltd. v. Union of India ((1986) 162 ITR 846), the Constitutional Bench took the view that the "grey fabric" after it undergoes the various processes of bleaching, dyeing, sizing, printing, finishing etc. emerges as a commercially different commodity with its own price structure, custom and other commercial incidents and that there was in that sense a "manufacture" within the meaning of S.2(f). It is the case of the petitioner herein that the end product namely, the centrifuged latex which is received after the process is totally a different commercial commodity from the raw latex received from the tree. On the other hand, the respondent relied on certain other decisions in support of its contentions that centrifuging may not in any way be described as a manufacturing process. In Bahri Steel Wires v. Additional Commercial Tax Officer and another (84 STC 418), the Supreme Court considered whether a new commercial commodity has come into being as a result of M.S. wires being drawn out of M.S. wire rods. The Supreme Court held that M.S. wires drawn out of tax suffered M.S. wire rods can noted be taxed again when sold by virtue of sub-item (xv) of item (iv) Ss.14 and 15 of Central Act. Another decision relied on by the respondent is that of, High Court of Madras in State of Tamil Nadu v. Bharat Dairy Farm (81 STC 332) where it was held that the process of stirring cream to quicken the process of conversion into butter, does not bring into existence any different commercial commodit than the original one, since no manufacturing process at all is involved in the conversion of cream into butter. In the judgment of this Court in T.R.C. No. 15 of 1982, it was held that garbled pepper is not a different commodity from pepper. The learned Government Pleader submitted that there is no merit in the reliance made by the petitioner in the provisions contained under Central Excise Act since each statute has its own emphasis. 6. In His Majesty the King v. Planters Nut and Choclate Co. The learned Government Pleader submitted that there is no merit in the reliance made by the petitioner in the provisions contained under Central Excise Act since each statute has its own emphasis. 6. In His Majesty the King v. Planters Nut and Choclate Co. Ltd., 1951 CLR (EEx) 122, while considering the question as to what constitutes a fruit or vegetable within the meaning of Excise Tax Act, the Exchequer Court of Canada took the view that what is important is the meaning given to the word ordinarily in matters of commerce in Canada and not what would be a botanist's conception of the subject matter. Generally, this is the principle which has been followed by Indian Courts while examining whether after the process a new product has come into existence. If a commercially new product is formed, uniformly it is held that there had been a manufacturing process and the end product obtained is different from the raw materials. 7. applying the above test, the question that has to be considered is whether the centrifugal process can be termed as a manufacturing process and whether the centrifuged latex is commercially different from raw latex. If itis so, then the centrifuged latex would come within the term finished product under S.5(7). Chapter 23 in the Hand-book of Natural Rubber Production in India published by the Rubber Research Institute of India, in the year 19 80 deals with preserved field latex and latex concentrates. In the above chapter, necessity of preserving the natural rubber latex is explained as follows: Natural rubber latex is a negatively charged collodial dispersion of rubber particles in an aqueous serum. The presence of non-rubber constituents like proteins, carbohydrates etc in latex makes it a suitable medium, for growth of microorganisms. Because of the proliferation of microorganisms; organic acids are produced and these decrease the stability of latex and eventually coagulate it. This is called spontaneous coagulation, which takes place within a period of 6-12h, Hence, if latex is to be kept for longer periods, bacterial activity should be suppressed. This is accomplished by the addition of preservatives. "Various chemicals are used as preservatives among which most important is ammonia. In page 403 para. 23.2, there is reference to preserved field latex being used as raw materials for latex concentration units. This is accomplished by the addition of preservatives. "Various chemicals are used as preservatives among which most important is ammonia. In page 403 para. 23.2, there is reference to preserved field latex being used as raw materials for latex concentration units. It is further slated that preserved field latex as such is not used in any other manufacturing industry. In Para. 23.3 at page 405, the process of latex concentration is dealt with as follows: "The process of latex concentration involves the removal of a substantial quantity of serum from field latex, thus making latex richer in rubber content. Concentration of latex is necessary because of the following four reasons: i) Economy in transportation; ii) Preference for high dre by the consuming industry; iii) Better uniformity in quality; and vi) Higher degree of purity. Various processes have been proposed for concentrating latex. Out of these, four have emerged as of special importance. These are evaporation, creaming, centrifuging and electro decantation" It is further stated in Para. 23.3.3 that over 90 percent of the concentrated latex is produced by centrifuging. Several types of centrifuging machines are used for the concentration of latex. In this process, usually latex is animated and kept overnight before being centrifuged, thus giving time for the sludge to settle down. Latex is fed to the centrifuge from a constant head device so as to ensure a constant flow through the machine. It enters the bowl through a central feed tube and then passes through a distributor to the bottom of the bowl where it flows through a series of holes into the interior of the bowl. The cream centrifuges inwards towards the axis of rotation and then empties from the bowl through holes into a stationary gully. The skim flows outwards away from the axis of rotation and leaves the bowl through orifices which are formed by regulating screws. It passes out of the centrifuge through a second stationary gully. The cream is separately collected in a bulking tank and packed in drums. This in brief is the process of centrifuging of latex. 8. I find i t difficult to accept the contentions of the respondent that the above cannot be treated as a manufacturing process and that the end product namely, centrifuged latex is the same as raw latex. The cream is separately collected in a bulking tank and packed in drums. This in brief is the process of centrifuging of latex. 8. I find i t difficult to accept the contentions of the respondent that the above cannot be treated as a manufacturing process and that the end product namely, centrifuged latex is the same as raw latex. I am of the view that the centrifuged latex obtained at the end of the above process is commercially a different product from the raw rubber latex. If that be so, it can come within the term of finished products under S.5(7) of the Kerala General Sales Tax Act. Respondent has no case that the drums were purchased by the petitioner not for the purpose of storing the centrifuged latex concentrate. Therefore, the petitioner was perfectly justified in issuing Form No. 18 declarations claiming that the drums were for marketing the finished products and therefore, entitled to the benefit of lesser rate of tax under S.5(7) of the Kerala General Sales Tax Act. Ext. P3 is therefore, set aside and the original petition stands allowed as above.