TMI Blog1986 (12) TMI 342X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 supply in that area, for being used as fuel in the kiln in his factory for the manufacture of the til ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (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-taxability of the purchase turnover of cashew shells under Notification No. SRO 722/73. The Tribunal, howe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. They had not been used as raw material in the manufacture of any goods for sale by the assessee. They ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 [1987] 65 STC 16; 1986 KLN 699, wherein we have concurred with the decision of the Karnataka High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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