Purchase tax under section 6-A applies only when all statutory conditions are satisfied; milk purchases escaped levy.

Section 6-A of the A.P. General Sales Tax Act imposes purchase tax only when the statutory conditions for levy are cumulatively satisfied. The Andhra Pradesh HC noted that mere purchase of milk from an unregistered dealer, followed by conversion into spray baby milk powder, did not by itself attract the provision. As the milk was not consumed in manufacture for sale in the manner required, was intended for sale, was not otherwise disposed of than by sale in the State, and involved no despatch outside the State, the purchase tax demand was not sustainable. The Tribunal's view was affirmed and the revision failed.

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Issues: Whether milk purchased from an unregistered dealer and used in the production of spray baby milk powder was liable to tax under section 6-A of the A.P. General Sales Tax Act, 1957.

Analysis: Section 6-A imposes tax on the purchase of goods in specified circumstances, and liability arises only if the purchase falls within the statutory situations and one of the prescribed conditions is satisfied. The provision is directed to purchase tax, not sale tax. On the facts, the milk was purchased from an unregistered dealer, but it was not consumed in the manufacture of other goods for sale, the goods were intended for sale and were not disposed of otherwise than by sale in the State, and there was no despatch outside the State attracting the provision. The conversion of milk into spray baby milk powder was not treated as manufacture for the purpose of the levy.

Conclusion: The milk was not liable to tax under section 6-A, and the revision failed.

Final Conclusion: The Tribunal's view was affirmed and the purchase tax demand on the milk was set aside by dismissal of the revision.

Ratio Decidendi: Liability under section 6-A arises only when the statutory purchase-tax conditions are cumulatively satisfied, and mere purchase of goods later converted into a marketable product does not attract the levy unless one of the specified conditions is shown.

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