Conflicting statutory interpretation over purchase tax wording sent to a larger Bench for authoritative resolution.

Conflicting interpretations of the phrase "either consumes such goods in the manufacture of other goods for sale or otherwise" in section 6-A of the Andhra Pradesh General Sales Tax Act, 1957 were noted in the context of purchase tax on goods consumed in manufacture. One line of authority read the expression as covering consumption in the manufacture of goods for sale or consumption otherwise, while another treated it as distinguishing goods used in manufacture of goods for sale from goods used in manufacture of goods not meant for sale. Because the two co-ordinate Bench views were directly at odds and the controversy also persisted under other State enactments, the matter was held fit for consideration by a larger Bench and placed before the Chief Justice accordingly.

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Issues: Whether the conflicting interpretations of the expression "either consumes such goods in the manufacture of other goods for sale or otherwise" in section 6-A of the Andhra Pradesh General Sales Tax Act, 1957 required resolution by a larger Bench.

Analysis: Two decisions of co-ordinate strength had construed the same words differently in the context of purchase tax on goods consumed in manufacture. One view treated the words as covering consumption in manufacture of goods for sale or consumption otherwise. The other view read the clause as referring to goods consumed in manufacture of goods for sale and goods consumed in manufacture of goods not meant for sale. Although the amendment made by the Andhra Pradesh Legislature indicated support for one interpretation, the controversy continued to survive under other State enactments. In view of the direct conflict, the matter was considered appropriate for determination by a larger Bench.

Conclusion: The conflict was not resolved on merits and the matter was directed to be placed before the Chief Justice for constitution of an appropriate larger Bench.

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