TMI Blog1991 (4) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... in section 2(26) of the Gujarat Sales Tax Act, 1969 and that, therefore, the opponent was entitled to claim deduction of those sales from its turnover of sales in terms of clause (ii) of sub-section (1) of section 10 of the Gujarat Sales Tax Act, 1969?" 2.. To answer the said questions, it is necessary to refer to certain relevant facts which are as under: (i) The opponent carried on business to purchase grit or stone chips and to sell them as kapchi as known in Gujarati after cleaning and grading them into various sizes by passing them through sieves. During the assessment year being Samvat year 2029, the opponent sold various grades of stone chips and he treated those sales as mere resales of grit or stone chips, and had accordingly paid tax along with returns filed under the said Act. (ii) Before the Sales Tax Officer it was the case of the opponent that after purchasing the grit the same is subjected to process of sieving which would result into separating stone chips of different sizes and he has, thereafter, effected sales of such stone chips of different sizes. According to the opponent such transaction of sales were mere "resales" within the meaning of the term "resal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... first to refer to the nature of the business of opponent and activity or process to which the goods are being subjected. Admittedly, the opponent is purchasing the crushed stones popularly known as grit. The opponent removes the dust therefrom, passes it through sieves of various sizes so as to get chips of stones of various sizes. These chips of stones which are obtained in various sizes are, thereafter, sold by the opponent. We may mention at this stage that considerable amount is being spent by the opponent on labour charges for process of sieving. Thus, this process of sieving helps the opponent in separating stone chips of uniform and smaller sizes in separate lots or separate grades, and such stone chips are, thereafter, sold as "stone chips" but not as "grit". 4.. We may mention at this stage that the commodity purchased by the opponent is known as grit. After subjecting the said commodity to the process of sieving the opponent obtains stone chips of smaller and more or less uniform sizes in different grades. These stone chips are distinct commodities and the same are sold by the opponent as stone chips and not as grit. The stone chips which are so obtained and sold by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... helped him in obtaining stone chips of smaller and more or less uniform sizes in different grades. Question, therefore, which is required to be answered is to whether the opponent has resold the goods in the same form in which they were purchased. That leads to the enquiry as to what is meant by the words "same form" as used in section 2(26)(i). The word "form" connotes visible aspect in which the thing exists or manifests itself. It is in this sense that the words "same form" are used in clause (i) of section 2(26). If the visible appearance of the goods purchased does not change and the same are sold it can be said to be "resale" of purchased goods. From clause (ii) of the said definition the legislative intent becomes clear. If nothing is done to goods purchased and they are sold in the same visible appearance in which they manifest themselves at the time of their purchase, clause (i) is attracted so as to describe that transaction of sale of purchased goods as "resale". However, when such goods are subjected to any process which is sort of manufacture as defined in section 2(16) of the said Act, it would still be "resale" of purchased goods. If the goods purchased are subjec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts) in the same form in which they were purchased. We are of the opinion that if correctly understood, the words "same form" connote a visible aspect in which the thing exists or manifests itself. Once the thing is subjected to a process or something is done, vis-a-vis, the thing and if visual appearance changed it cannot be said that the goods were sold in the same form. The transaction of sale of stone chips, therefore, would not fall within the definition of section 2(26)(i) or (ii) and as such the opponent would not be entitled to deduction thereof under section 10(1)(ii). The process to which the grit is subjected by the opponent also amounts to manufacture as observed by us inasmuch as the said process results into bringing about transformation of grit into stone chips which is a distinct and separate commodity having different name and use. 8.. At this stage, we may mention that the learned Assistant Government Pleader invites our attention to the decision of the Division Bench of this Court in the case of State of Gujarat v. Bhikhubhai Sons reported in [1982] 50 STC 243. In the case before the Division Bench the commodity, namely, kolshi, as such consists of two constit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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