Bamboo blinds and purchase turnover tax: mere binding of bamboo was not treated as manufacture under section 5A.

Purchase turnover of bamboo was not taxable under section 5A of the Kerala General Sales Tax Act where the bamboo was merely converted into bamboo blinds. Liability under section 5A depends on whether the purchased goods are consumed in the manufacture of other goods for sale. Applying the earlier binding view, the Court noted that binding bamboo with rope did not amount to a manufacturing process, the identity of the goods was not lost, and there was no transformation into a different commercial commodity. On that basis, the Tribunal's view that section 5A did not apply was upheld.

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Issues: Whether the purchase turnover of bamboo was liable to tax under section 5A of the Kerala General Sales Tax Act, 1963 when bamboo was converted into bamboo blinds.

Analysis: The liability under section 5A depends on whether the goods purchased were consumed in the manufacture of other goods for sale. The earlier binding decision had held that where bamboos were merely bound with a rope and sold as bamboo blinds, no manufacturing process was involved, the identity of the goods was not lost, and there was no transformation into a different commodity. Following that reasoning, the Tribunal's view that section 5A did not apply was upheld.

Conclusion: The purchase turnover of bamboo was not taxable under section 5A in these circumstances.

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