1996 (7) TMI 519

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....ED SHAH MOHAMMED QUADRI, J.-This tax revision case is filed by the State against the order of the Tribunal in T.A. No. 344 of 1987 dated December 18, 1989, holding that no tax is payable on the milk under section 6-A of the A.P. General Sales Tax Act, 1957 (for short "the APGST Act"), which is utilised in the production of Vijaya Spray Baby Milk Powder. 2.. The question that arises for consider....

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....r purchase of which is liable to tax under this Act) from a person other than a registered dealer, and (a) either consumes such goods in the manufacture of other goods for sale or otherwise, or (b) disposes of such goods in any manner other than by way of sale in the State, or (c) despatches them to a place outside the State except as a direct result of sale or purchase in the course of i....

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....the course of his business purchases any goods from a person other than a registered dealer and the sale or purchase of such goods is liable to tax under the Act. In any one of the above two situations the liability to pay tax under section 6-A would arise subject to the fulfilment of any one of the following three requirements: (a) where on purchase of such goods the dealer consumes such goods....

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....that one of the aforementioned two situations exists. The Revenue has also to show that any one of the abovementioned three requirements is fulfilled. In this case, the assessee purchased milk from an unregistered dealer and it is an admitted fact that the sale of the milk is taxable as general goods, so the second of the abovementioned situations is present. But then it has to be further examined....