1994 (9) TMI 296

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.... this Court on the interpretation of the words "either consumes such goods in the manufacture of other goods for sale or otherwise"-which occur in section 6-A of the Andhra Pradesh General Sales Tax Act, 1957, as well as several other State enactments imposing purchase tax. So far as we could see, these very words occur in the Kerala Sales Tax Act, Tamil Nadu Sales Tax Act and Madhya Pradesh Sales Tax Act. In Ganesh Prasad Dixit v. Commissioner of Sales Tax, Madhya Pradesh [1969] 24 STC 343 (SC); [1969] 3 SCR 490, Shah, J., speaking for himself, Ramaswami and Grover, JJ., construed the said words in the following manner: "Mr. Chagla, for the appellants urged that the expression 'or otherwise' is intended to denote a conjunctive introduci....

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....or sale but also goods consumed otherwise. There is a fallacy in the submission. The clause, truly read, speaks of goods consumed in the manufacture of other goods for sale or goods consumed in the manufacture of other goods for purposes other than sale." According to this reading, the said clause means: (i) either consumes such goods in the manufacture of goods for sale; or (ii) consumes such goods in the manufacture of goods not meant for sale ("otherwise"). It is also brought to our notice that subsequently a two-Judge Bench comprising Sabyasachi Mukharji and Ranganathan, JJ., in Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes), Ernakulam v. Thomas Stephen & Co. Ltd. [1988] 69 STC 320 (SC); [1988] 2 SCC 264, a....