Resale deduction under sales tax law requires purchase from a registered dealer dealing in that class of goods, not a casual sale.

Resale deduction under section 8(ii) of the Bombay Sales Tax Act, 1959 is available only where the goods were purchased from a registered dealer dealing in that very class of goods in the course of his business. A registered dealer's casual sale outside the scope of his business does not satisfy the statutory requirement and is treated like a sale by an unregistered dealer. On that construction, the deduction was not admissible.

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Issues: Whether a resale deduction under section 8(ii) of the Bombay Sales Tax Act, 1959 is available when the goods were purchased from a registered dealer who was not dealing in that class of goods and the sale to the assessee was only a casual sale.

Analysis: The statutory scheme taxes sales and purchases made by a dealer in the course of the business of buying or selling goods. Registration under section 22 is linked to the dealer's particular business, not to all transactions of that person in every kind of goods. The registration forms and certificate forms reinforce that the dealer must specify the nature of the business and the classes of goods in which he deals. On that construction, goods resold by the assessee qualify for deduction only if they were purchased from a registered dealer dealing in that very class of goods. A casual sale by a registered dealer outside his business does not satisfy that requirement and stands on the same footing as a sale by an unregistered dealer.

Conclusion: The deduction was not admissible, and the question was answered in the affirmative against the assessee.

Ratio Decidendi: For the purpose of resale deduction under section 8(ii) of the Bombay Sales Tax Act, 1959, the seller must be a registered dealer in respect of the relevant class of goods sold in the course of his business; a casual sale outside that business is treated as a sale by an unregistered dealer.

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