Abhilasha Kumari, J. - (1.) At the instance of the Revenue, the Gujarat Sales Tax Tribunal at Ahmedabad has referred the following two questions of law for the opinion of the High Court under Section 69 of the Gujarat Sales Tax Act, 1969 (The Act for short): 1]. Whether on the facts and in the circumstances of the case, the Tribunal was right and justified in law in allowing the revision application by setting aside the order of the learned Assistant Commissioner of Sales Tax, whereby it was held that process of converting raw cotton-seed oil into refined cotton-seed oil was a process of manufacture and sales of cotton-seed oil cannot not be treated as R.D. resales? 2]. Whether on the facts in the circumstances of the case, the Tribunal was right in holding that the effect of the decision of the Tribunal is prospective, meaning thereby that it does not apply to the transactions carried out earlier?
(2.) The background facts giving rise to the present Reference are that the assessee M/s. Saurashtra Solvent Extraction Company Pvt. Ltd. was carrying on the business of running an Oil Mill and Oil Extraction Plant. It used to purchase raw cotton-seed oil from registered dealers. After converting the raw cotton-seed oil into refined oil, the assessee used to sell the same as refined oil. During the period with effect from 1/9/1977 to 30/8/1978, the assessee purchased raw cotton-seed oil from the dealers and after converting it into refined oil, sold the same and claimed deduction under Section 7(ii) of the Act. Section 7(ii) of the Act deals with resales of goods purchased by a dealer from a registered dealer. The assessment order for the assessment year 1981-82 was passed by the Sales Tax Officer on July 28,1981, treating the sales as re-sale of goods purchased by the assessee from registered dealers and thereby allowing the deduction claimed by the assessee.
(3.) Before the assessment in respect of the assessee was completed, the Tribunal had rendered a judgment in the case of Sanjay Oil-Cakes Industries v. The State of Gujarat in Appeal No. 8 of 1979 on April 16,1981, taking the view that the conversion of raw cotton-seed oil into refined cotton-seed oil is a process of 'Smanufacture' and, therefore, it cannot be considered as a re-sale of goods purchased by a dealer from a registered dealer.;