1999 (9) TMI 933

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....NGHAL, J.-The order of the Karnataka Appellate Tribunal dated August 22, 1996 has been challenged in this appeal for the assessment year 1992-93.   2. The assessee has purchased husk from unregistered dealer which was used as a fuel in the preparation of the food articles and is liable to tax under section 6 of the Karnataka Sales Tax Act, 1957. The Tribunal found that the explanation to s....

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.... 4.. Learned counsel for the petitioner submitted that in view of the interpretation which is given by the apex Court and by the Tamil Nadu High Court with regard to the word "consumption" there cannot be any consumption unless the said item has been made as ingredients of the finished goods. 5.. Arguments by both the learned counsel for the parties heard. 6.. Provisions of section 6 are a....

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.... section 5. ....................................... Explanation.-For the purpose of this section 'consumes such goods in the manufacture' shall include goods consumed for ancillary purposes in or for such manufacture." In the case of P.C. Balaramaraja v. State of Tamil Nadu [1994] 94 STC 212 (Mad), it was held that "it must be as raw material or component going into end-product, charcoal ....

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....he fuel itself was not consumed in the manufacture and was not a component or part in one form or other. But the explanation provides that "consumes such goods in the manufacture shall also include goods consumed for ancillary purposes in or for such manufacture". The ancillary purpose would be for burning as fuel and, therefore the definition as under the Kerala General Sales Tax Act and Tamil Na....