1982 (4) TMI 264

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....mainly in paddy and rice. The business of the petitioner consists in the purchase of paddy from growers and converting the same into rice and selling it. 3.. Section 6 of the "Act" reads as follows: "6. Levy of Purchase tax under certain circumstances.-Subject to the provisions of sub-section (5) of section 5, every dealer who in the course of his business purchases any taxable goods in circumstances in which no tax under section 5 is leviable on the sale price of such goods and, (i) either consumes such goods in the manufacture of other goods for sale or otherwise or disposes of such goods in any manner other than by way of sale in the State, or (ii) despatches them to a place outside the State except as a direct result of sale....

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....ourse of his business and under circumstances in which no tax is leviable under section 5, he does any one of the following acts with reference to such goods: (i) consumes the goods in the manufacture of other goods for sale; (ii) consumes the goods otherwise than in the process of manufacture; (iii) disposes of the goods otherwise than by sale in the State; (iv) despatches the goods outside the State otherwise than in the course of inter-State trade or commerce." 5.. In these cases, the petitioner had purchased paddy and manufactured rice out of it for purposes of sale. Therefore, under the impugned orders he is called upon to pay tax under section 6 of the "Act" on the purchase price of paddy. 6.. Sri B.V. Katageri, the ....