TaxTMI 
TaxTMI 
1988 (3) TMI 59
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....f Kerala, dated December 9, 1986. The High Court by the impugned judgment dismissed the revision cases, which were brought at the instance of the revenue. 2. The assessee is a manufacturer and dealer in tiles, terra-cotta wares and ceramic. It was assessed to tax under Section 5A of the Kerala General Sales Tax Act, 1963, hereinafter called 'the Act', for the assessment years 1974-75, 1975-76 and 1976-77 among other things on the purchase turnover of cashew shells and consumed stores, lime shells etc., purchased by the assessee-Company. These are in abundant supply in that area. These are used, as it appears from the judgment of the High Court and from the facts found by the Tribunal, as fuel in the kiln in the factory of the assessee fo....
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....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) dispatches them to any place outside the State except as a direct result of sale or purchase in the course of inter-state trade or commerce, shall, whatever be the quantum of the turnover relating to such purchase for a year, pay tax on the taxable turnover relating to such purchase for the year at the rates mentioned in Section 5." ! 5. In second appeal the Tribunal also did not accept this case of the assessee regarding non-taxability of the purchase turnover of the cashew shells under the said notification. The Tribunal, however, held that the cashew shells had been use....
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....dentity, notwithstanding the removal of inedible portions, the slicing and thereafter canning it on adding sugar to preserve it. 8. On the construction of the section, this Court observed that Section 5A(1)(a) of the Act envisaged the consumption of a commodity in the manufacture of another commodity (emphasis supplied). The goods purchased should be consumed, the consumption should be in the process of manufacture, and the result must be manufacture of other goods. Pathak, J. as the learned Chief Justice then was, at page 67 of the report observed as follows : "The learned Counsel for the Revenue contends that even if no manufacturing process is involved, the case still falls within Section 5A(1)(a) of the Kerala General Sales Tax Ac....
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....radesh [1969 3 SCR 490 at page 491] where this Court was dealing with the provisions of Madhya Pradesh General Sales Tax Act, 1959. There the expression used was 'either consumes such goods in the manufacture of the goods for sale or otherwise'. At page 495 of the report Shah, J. speaking for this Court observed as under :- "Mr. Chagla for the appellants urged that the expression "or otherwise" is intended to denote a conjunctive introducing a specific alternative to the words for sale immediately preceding. The clause in which it occurs means, says Mr. Chagla, that by Section 7 the price paid for buying goods consumed in the manufacture of other goods, intended to be sold or otherwise disposed of, alone is taxable. We do not think that ....