TMI Blog1981 (8) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... sses and after cutting them into reams of different sizes selling to printing presses or other dealers dealing in paper. While making the assessments for the four periods, which are financial years 1969-70 and 1st April, 1970, to 5th May, 1970 (both covered under the Bombay Sales Tax Act, 1959) (hereinafter referred to as "the Bombay Act"), and 1st April, 1971, to 30th May, 1971, and 6th May, 1970, to 31st March, 1971 (both covered under the Gujarat Act), the Sales Tax Officer held that the activity of the opponent-assessee amounted to manufacture, and assessed the tax on the sales of reams of different sizes at the rate applicable under the residuary entry by disallowing the deduction of resales of goods purchased from the registered deale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered that the case of the assessee stood on a firmer ground on the second point and, therefore, proceeded to deal with it first. It is an admitted position that the assessee used to purchase tear-waste of newsprint reels from the printing presses, and that was cut into reams of different sizes. The Tribunal, therefore, considered that cutting of papers which were in greater lengths to the papers of smaller lengths would not amount to change in the form of the goods. The Tribunal relied on the decision of this Court in Vaiswaner Trading Co. v. State of Gujarat [1964] 15 STC 586, wherein the assessee purchased pieces of rolled steel sections and then were joined together by reverting. In that case this Court held that by joining together ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of case and refer the following question of law to this Court for its opinion: "Whether, on the facts and in the circumstances of the case, the Gujarat Sales Tax Tribunal was correct in law in allowing the second appeals and holding that the sales of paper in question by the opponent are treated as resales and deduction of resales of the goods purchased by the opponent should be allowed and the Tribunal was also correct in setting aside the orders of disallowing the deduction of resales of papers and imposing penalty under section 36(3)(a) of the Bombay Sales Tax Act, 1959, and the order of granting set-off?" Having heard the arguments of the parties, we feel that the question as framed above is not proper and, therefore, we have heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oses of sections 7, 8, 10, 13 and 15 (so far as the Gujarat Act is concerned, and sections 7, 8, 9, 10, 12 and 13, so far as the Bombay Act is concerned) means a sale of purchased goods: (i) in the same form in which they were purchased, or (ii) without doing anything to them which amounts to, or results in a manufacture, or (iii) .............................. and the word 'resell' shall be construed accordingly." Clause (ii) of sub-section (26) of section 2 refers to "manufacture", and we have already considered that the action of the assessee would not be covered by "manufacture" and, therefore, this clause (ii) of sub-section (26) of section 2 would not be applicable. The question to be considered is whether the sale was i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing observations are made: "........Rolled steel sections as they emerge from the rolling mills may be of diverse lengths that a dealer may purchase for the purpose of sale. It may be that rolled steel sections in certain lengths only may be required by the consumers and a dealer may, therefore, find that in order to be able to sell the rolled steel sections purchased he may have to cut them up into smaller pieces. When a dealer cuts up the rolled steel sections purchased by him from the rolling mills into smaller pieces and sells such smaller pieces in the lengths required by the consumer, can it be said for a moment that such pieces are not sold in the same form in which rolled steel sections are directly produced by the rolling mill ..... X X X X Extracts X X X X X X X X Extracts X X X X
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