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2008 (4) TMI 485 - SC - VAT and Sales TaxLiability to pay "purchase tax" under section 5A of the Kerala General Sales Tax Act, 1963 Whether the mentioned process amounts to consumption/use of red oil in the manufacture of sandalwood oil as contended on behalf of the respondent- department? Held that:- Appeal allowed. As in tax matters courts have to keep in mind distinction between approach and principle. Courts have to go by the principle involved in the fiscal legislation. Keeping in mind the distinction between these two concepts, we are of the view that the High Court was not justified in making the observation which is underlying hereinabove. The decision of the Tribunal is objective. It is based on the correct formulation of the test of irreversibility involved in the process of manufacture and, therefore, the High Court was not justified in observing that the finding of the Tribunal was patently absurd and perverse.
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