Sale of unused raw material was not taxable where purchase was for manufacture, not resale, under the Central Sales Tax Act.

Sale of staple fibre bought as raw material for an existing spinning business was not treated as taxable under the Central Sales Tax Act, 1956, because the purchase was made for manufacture and not with any intention to resell. On that basis, the later sale of the unused fibre did not fall within a sale made in the course of the assessee's business under the statutory definitions of "dealer" and "sale" in section 2(b) and section 2(g). The Tribunal's view that the transaction was not taxable was upheld.

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Issues: Whether the sale of staple fibre, originally purchased as raw material for the assessee's spinning business but later resold when it could not be used in manufacture, was taxable under the Central Sales Tax Act, 1956.

Analysis: The purchase was found to be for use as raw material in the existing manufacturing business, without any intention to resell. On that finding, the subsequent sale could not be treated as a sale made in the course of the business carried on by the assessee, having regard to the definitions of "dealer" and "sale" under section 2(b) and section 2(g) of the Central Sales Tax Act, 1956.

Conclusion: The Tribunal's view that the sale was not taxable was upheld and the revision petition was dismissed.

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