Purchase turnover tax under section 7-A applies only to consumed inputs, not goods merely used in manufacture.

Purchase turnover is taxable under section 7-A of the Tamil Nadu General Sales Tax Act, 1959 only when the purchased goods are consumed in the manufacture of other goods for sale or otherwise; mere use or utilisation in manufacture is insufficient. Because the folded clips were only used, and not consumed, in making office files, the statutory condition was not met and no tax liability arose on the purchase turnover.

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Issues: Whether the purchase turnover of folded clips purchased from unregistered persons and used in the manufacture of office files attracted tax under section 7-A of the Tamil Nadu General Sales Tax Act, 1959.

Analysis: Section 7-A applies only where the purchased goods are consumed in the manufacture of other goods for sale or otherwise. The distinction between "consumes" and merely "uses" or "utilises" the goods was material. As the folded clips were not consumed in the manufacturing process but only used in making office files, the statutory requirement was not satisfied.

Conclusion: The purchase turnover did not attract tax under section 7-A of the Tamil Nadu General Sales Tax Act, 1959, and the finding was in favour of the assessee.

Ratio Decidendi: Liability under section 7-A arises only when the purchased goods are consumed in the manufacture of other goods; mere use or utilisation in manufacture is insufficient.

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