9911796707
TMI Blog1991 (4) TMI 380X X X X Extracts X X X X X X X X Extracts X X X X ..... same to the processes undertaken by it, constituted 'resales' of the original goods purchased, on the ground that no distinct commercial commodities were obtained from the original goods by subjecting them to the processes undertaken by the opponent-concern and, therefore, the opponent-concern was entitled to deduct the value of those sales from its turnover liable to tax?" The facts, as they appear from the judgment of the Tribunal, are that the assessee, who is a registered dealer under the Act, is engaged in the business of purchasing waste mixture of polyester and cotton fibres from textile mills and selling the same, after removing therefrom dust and other impurities after subjecting them to the process of carding and drafting. On Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order to appreciate this submission, it would be necessary to understand what exactly is purchased by the assessee and to which processes the said goods are subjected to by the assessee before selling them. The assessee is purchasing waste mixture of polyester and cotton fibres from textile mills. This waste mixture comes into existence during the process of converting such fibres into polyester-cum-cotton yarn, that is, during the process when fibre is spun into yarn. This waste material also contains dust and other impurities and it is mixture of not only polyester and cotton fibres but also a mixture of fibres of light orange and white-blue colours. After purchasing such mixture, the assessee cleans the same by removing dust and other i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee, he was not able to tell us by which different name the said goods are sold in the market. As regards their use also he was not able to point out any other use to which such goods are put to, except for the purpose of spinning yarn out of them. Though as a result of the process employed by the assessee, it is able to sell cleaned mixture of polyester and cotton fibres of different colours separately, and also at a higher price, it cannot be said that the assessee is selling different goods having distinct identity and distinct use. For all these reasons, it will have to be held that though the assessee subjects the purchased goods to certain processes, those processes do not amount to or result in manufacture of a new commercial com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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