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2008 (11) TMI 644 - MADRAS HIGH COURTWhether fuel that used for the manufacture of parts is liable to tax under section 7A, as it stood prior to 1997? Held that:- Fuel, which is used by the manufacturer of goods, is not taxable if it is used for the manufacture and not "in the manufacture". The assessment year in the present case is 1993-94. Kerosene which was used for the manufacture of cycle parts cannot be taxed since at that time, the words, "for the manufacture" were not included in section 7A. In fact, it is seen that with regard to the same assessee for the assessment year 1995-96, the case of the assessee has been accepted on the facts that the kerosene is used "for the manufacture" of the end-products and not "in the manufacture" of the finished goods and the case was decided in favour of the assessee. Therefore, on the facts, it was clear that kerosene, which is the fuel in question, was used only for the manufacture of the other goods. Question is answered in favour of the assessee.
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