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1969 (2) TMI 157 - SC - VAT and Sales TaxWhether the respondent is entitled to the exemption under section 5(2)(a)(vi) of the Act in the context and setting of the language of sections 14 and 15 of the Central Sales Tax Act, 1956? Held that:- Appeal allowed. The appellants are right in their contention that the ginning process is a manufacturing process. It is true that cotton in its unginned state contains cotton seeds. But it is by a manufacturing process that the cotton and the seeds are separated and it is not correct to say that the seeds so separated is cotton itself or part of the cotton. They are two distinct commercial goods though before the manufacturing process the seeds might have been a part of the cotton itself. There is hence no warrant for the contention that cotton seed is not different from cotton. It follows that the respondent is not entitled to deduct the sale price of the cotton seeds from the purchase turnover under section 5(2)(a)(vi) of the Act. In our opinion, the assessing authority was right in holding that the respondent was not entitled to deduction in respect of cotton seeds sold by it to registered dealers. It is conceded that the assessing authority had already granted deduction under section 5(2)(a)(vi) so far as ginned cotton is concerned.
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