Resale deduction denied where ash separated from kolshi was treated as a distinct commodity, not the same goods purchased.

Sale of ash separated from purchased kolshi by sieving did not qualify as a resale for deduction under section 7(ii) of the Gujarat Sales Tax Act, 1969. The statutory definition of "resale" required the purchased goods to be sold in the same form, or without any act amounting to manufacture, or without taking them out of their scheduled description. Ash and kolshi were distinct commercial commodities, so the ash sold after separation was not the same goods as the coal mixture originally purchased. The deduction was therefore unavailable because the resale conditions were not satisfied.

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Issues: Whether the sale of ash separated from kolshi by sieving could be treated as a resale of the goods originally purchased so as to qualify for deduction under section 7(ii) of the Gujarat Sales Tax Act, 1969.

Analysis: The statutory definition of "resale" in section 2(26) permits deduction only where purchased goods are sold in the same form, or without any act amounting to manufacture, or without any act taking them out of the relevant description in the schedules. The assessee had purchased kolshi, which was coal in a mixed form, and after sieving sold the separated ash. Ash and kolshi were held to be distinct commercial commodities, and ash was not the same commodity as the kolshi purchased. The sale of ash therefore could not satisfy the requirement of resale in the same form, nor could it be regarded as a sale of coal without altering its description under the relevant schedule.

Conclusion: The assessee was not entitled to deduct the sales of ash under section 7(ii); the question was answered in favour of the Revenue and against the assessee.

Final Conclusion: Deduction was disallowed because the commodity sold after separation was not the same goods as those purchased, and the statutory conditions governing resale were not fulfilled.

Ratio Decidendi: For a sale to qualify as a resale under the relevant sales tax definition, the purchased goods must remain the same commodity in law and in substance, and failure of any one statutory condition defeats the deduction.

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