Purchase tax exemption for resale in the same form and condition required fresh factual examination under the trade tax proviso.

Purchase tax under the U.P. Trade Tax Act depends on whether the dealer can bring its transactions within proviso (iii), which excludes liability where goods are resold within the State, in inter-State trade or commerce, or exported out of India in the same form and condition as purchased. The record showed that the authorities had not properly examined the import of this proviso against the revisionist's transactions, and the factual requirement of resale in the same form and condition needed verification. The matter was therefore remitted to the Tribunal for fresh determination of the proviso's applicability.

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Issues: Whether tax under Section 3-AAAA of the U.P. Trade Tax Act, 1948 was leviable when the purchasing dealer claimed the benefit of proviso (iii) on the ground that the goods were resold within the State, in inter-State trade or commerce, or exported in the same form and condition in which they were purchased.

Analysis: Section 3-AAAA imposes purchase tax in specified circumstances, but the proviso removes liability where the purchasing dealer resells the goods within the State, in inter-State trade or commerce, or exports them out of India in the same form and condition in which they were purchased. The record showed that the authorities had not properly examined the correct import and effect of this proviso in relation to the revisionist's transactions. The question depended upon factual verification of whether the statutory condition of resale in the same form and condition was satisfied, which required fresh consideration.

Conclusion: The issue was not finally decided against the revisionist on merits; the matter was remitted to the Tribunal for fresh determination of the applicability of proviso (iii) to Section 3-AAAA.

Ratio Decidendi: Where the statutory exemption from purchase tax depends on resale of the goods in the same form and condition, failure to properly examine that factual and legal requirement warrants remand for fresh adjudication.

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