STATE OF PUNJAB & ORS. vs M/S. CHANDU LAL KISHORI LAL & ORS. ETC.

The Supreme Court held that the respondent was not entitled to a deduction under Section 5(2)(a)(vi) of the Punjab Sales Tax Act, 1948 for cotton seeds sold to registered dealers, as these seeds were distinct from the unginned cotton that underwent a manufacturing process. The Court clarified that 'cotton ginned or unginned' is treated as a single commodity under the Central Sales Tax Act, 1956, and that the sale of cotton seeds cannot be classified as a sale of declared goods under Section 15 of the Act. The judgment of the High Court was overturned, affirming the assessing authority's decision.