- (1.) - These are three appeals by the State of Maharashtra. They arise out of the sales tax assessments of two assessees M/s. Shiv Datt and Sons and M/s. Vora Brothers. In the case of M/ s. Shiv Datt and Sons there are two assessment years 1968-69 and 1969-70 involved, while in the case of M/ s. Vora Brothers, the assessment relates to the period from 1-11-66 to 31-10-67. All the three appeals involve the same issue and can be disposed of by a common order.
(2.) M/s. Shiv Datt and Sons are dealers for 'Exide Batteries' while M/s. Vora Brothers are dealers for 'Standard Batteries'. They purchase the batteries from the manufacturers and sell them. The question is whether they can be treated as having resold the same good that they have purchased making them eligible for relief under S. 8 of the Bombay Sales Tax Act, 1959.
(3.) The above question arises for consideration in the following circumstances : The manufacturers sell to the assessees before us what are described as, "dry batteries without electrolyte". The batteries, when manufactured by the manufacturers, undergo a process known as "formation charge". In this process, the plates of the battery are immersed in a solution of sulphuric acid and distilled water. The plates are connected together by a lead strip and then connected to the two terminals of a source of supply of direct current. This current has an electrolytic action on the plates. After this process is undergone, the plates are dried in the ordinary way. But even after drying, the plates are put in electrolyte and electric current is passed through the plates for a long time. It is not necessary here to discuss the chemical transformation which occurs as a result of this charge. What is important is that, before the manufacturers transport the batteries to dealers such as the present respondents, the electrolyte is thrown out and the plates assembled in the battery manufactured by the manufacturers are dried. These plates do have some electricity charge, which can be retained for about six months if the battery remains in a hermetically sealed condition. However, if the battery comes in contact with air, the charge is lost gradually. It is in this state that the batteries are received by the dealers like the present respondents.;