1986 (12) TMI 342

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....red by T.L. VISWANATHA IYER, J.-These revision cases are at the instance of the Revenue and relate to the assessments made on the respondent-assessee for the assessment years 1974-75, 1975-76 and 1976-77. The assessee is a manufacturer of, and dealer in tiles, terra-cotta wares and ceramics. The assessee, who is carrying on his business in Quilon, purchases cashew shells which are in abundant s....

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....purchases were also claimed as non-taxable in view of the conditions prescribed in clause (a), (b) or (c) of section 5A(1) being not satisfied. 3.. The assessing authority and the first appellate authority overruled the contentions of the assessee and brought these purchases to tax under section 5A(1). In second appeal, the Tribunal did not accept the case of the assessee regarding the non-taxa....

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....evenue reiterated the contentions raised by the Revenue before the Tribunal. 4.. Section 5A(1) 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" [Deputy Commissioner of Sales Tax v. Pio Food Packers [1980] 46 STC 63 (SC)]. The cashew shells had admittedly been used as fuel in the kiln....

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.... that these goods have been disposed of otherwise than by way of sale within the State and hence liable to tax by virtue of section 5A(1)(b). We have, therefore, to examine whether there is any disposal of these goods in any manner otherwise than by way of sale within the State. We have had occasion to examine the precise meaning of this subclause in our decision in State of Kerala v. Ocean Wealth....