TMI Blog1999 (9) TMI 784X X X X Extracts X X X X X X X X Extracts X X X X ..... acture of other goods or are consumed otherwise. Therefore, while agreeing with the view in Ganesh Prasad Dixit [1969 (2) TMI 128 - SUPREME COURT OF INDIA] on this aspect, we overrule to this extent the view expressed in Pio Food Packers [1980 (5) TMI 30 - SUPREME COURT OF INDIA] - Civil Appeal No. 2064-2066 of 1984, 895-903 of 1989, 97 of 1990, 4858-4868 of 1991 - - - Dated:- 21-9-1999 - BHARUCHA S.P., KIRPAL B.N., RAJENDRA BABU S., SYED SHAH MOHAMMED QUADRI AND SHAH M.B. JJ. J. Ramamurthy, Senior Advocate (B. Sridhar, K. Ram Kumar, Mrs. Asha Nair and Ms. Shanti Narayan, Advocates, with him), for the appellant. U.N. Bachawat, Senior Advocate (A.D.N. Rao, A. Subba Rao and L.K. Pandey, Advocates, with him), for the respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contentions had been raised before the High Court such as discrimination between registered and unregistered dealers and that the respondents are not dealers and that in order to attract section 6-A a dealer must have purchased goods from unregistered dealers and consumed such goods in the manufacture of other goods for sale or disposed of such goods either within or outside the State. The first two contentions stood rejected and that part of the order is not challenged before us. Therefore, we have to confine ourselves to the question whether the respondents who purchased goods from persons other than registered dealers fall within the scope of section 6-A of the Act. Section 6-A of the Act reads as follows: 6-A. Levy of tax on tu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes otherwise than in the manufacture of other goods are also covered by clause (ii)(a) of section 6-A. The High Court found that there is a conflict between the decisions in Ganesh Prasad Dixit v. Commissioner of Sales Tax [1969] 24 STC 343 (SC); [1969] 3 SCR 490, and Deputy Commissioner, Sales Tax (Law), Board of Revenue (Taxes), Ernakulam v. Pio Food Packers [1980] 46 STC 63 (SC); [1980] 3 SCR 1271. The High Court is of the view that the said two decisions having been rendered by identical composition of Bench of three Judges, the latter decision was binding upon them and held that in order to attract the provisions of section 6-A(ii)(a) of the Act there must be consumption of the original goods for the purpose of manufacture of ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible, the assessee should get the benefit of doubt and tax ought not be imposed. The subsequent amendment to the enactment would make the position clear and, therefore, the expression otherwise cannot be read as in any other manner . 8.. Construing identical provisions in the Madhya Pradesh General Sales Tax Act, this Court in the decision in Ganesh Prasad Dixit [1969] 24 STC 343; [1969] 3 SCR 490, stated as follows: 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsumption or disposal or despatch of goods outside the State. So the scheme of clause (ii) of section 6-A of the Act is that when the goods cease to exist in the original form or cease to be available in the State for sale or purchase, the purchasing dealer of such goods is liable to tax if the seller is not or cannot be taxed. To our mind, it appears that the object of section 6-A(ii)(a) of the Act is to levy purchase tax on goods consumed either for the purpose of manufacture of other goods for sale or consumed otherwise. If the view in Pio Food Packers [1980] 46 STC 63 (SC); [1980] 3 SCR 1271, is accepted the result would be that the expression otherwise will qualify the expression sale and not the expression manufacture , which app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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