1983 (3) TMI 244

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.... petitioner is an assessee under the Kerala General Sales Tax Act and the assessment in question concerned the year 1972-73. While completing the assessment for that year the Sales Tax Officer, Karunagappally, levied tax under section 5A in respect of value of river sand and charcoal amounting to Rs. 33,963.80 and Rs. 1,225.81 respectively. The petitioner is manufacturing concrete pipes. River san....

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....egard to the taxability of the turnover of charcoal. We are only concerned with river sand. It is said that the entire river sand is purchased from one contractor and the purchase turnover of Rs. 33,963.80 exceeds the minimum turnover which makes a dealer taxable during the relevant year. Consequently it is said that irrespective of the question whether the contractor who supplies river sand to th....

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....assessee, but whether that is liable to be so taxed. In this case it is very clear that the person who sold to the assessee had a turnover in excess of the minimum and irrespective of the question whether he was registered as a dealer or not he was liable to pay tax under the General Sales Tax Act. If so, it cannot be said that transaction of purchase by the assessee was under circumstances in whi....

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....t that he produces, but also of the subsidiary product which would also be in the course of business. If, in the process of manufacture of concrete pipes, the byeproducts which the dealer may choose to call as waste material but which is of commercial value, become available for sale (the sale) by him of such material would be a regular phenomena depending on his business activity and therefore su....