Commodity identity in sales tax remains unchanged when manual cleaning removes chopa from dhania without material alteration.

Manual cleaning and separation of chopa from dhania did not materially alter the character or identity of the commodity. The Orissa HC noted that the goods remained dhania in substance, so the dealer retained entitlement to purchase on declaration for resale under the registration certificate. As there was no prohibited change in commodity, the proviso to section 5(2)(A)(a)(ii) of the Orissa Sales Tax Act, 1947 was not violated and assessment under section 12(8) was not justified. The Tribunal's view was therefore upheld, and the transaction was not treated as attracting additional sales tax on the footing of a changed commodity.

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Issues: Whether separation of chopa from dhania amounted to a change in the nature of the commodity so as to constitute a violation of the proviso to section 5(2)(A)(a)(ii) of the Orissa Sales Tax Act, 1947, making the assessment under section 12(8) unwarranted.

Analysis: The commodity, after manual cleaning and separation of chopa, remained dhania in substance. The process did not bring about any material alteration in the character of the goods, and the dealer continued to be entitled to the benefit of purchase on declaration for resale under the registration certificate. On the facts found, the commodity did not cease to retain its original identity merely because the chopa was removed.

Conclusion: There was no violation of the proviso to section 5(2)(A)(a)(ii), and the assessment completed under section 12(8) was not justified. The answer was therefore in favour of the dealer and against the petitioner.

Final Conclusion: The reference was answered in the affirmative, upholding the Tribunal's view that the transaction did not attract additional sales tax on the footing of a changed commodity.

Ratio Decidendi: A manual process that does not materially change the nature or identity of goods does not amount to a prohibited change in commodity for the purpose of denying tax relief available on purchase for resale.

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