TMI Blog1991 (2) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... sed for manufacture of other goods should themselves be converted into new article. Charcoal in this case has been used as fuel for the manufacture of handloom weaving reeds. In the course of manufacturing process, the appellant has consumed the charcoal for heating purposes. The manufacture of the handloom reeds cannot be done without heat and hence heating forms an integral part of manufacture in this case. In these circumstances, I am of opinion that the liability under section 7-A exists in respect of purchases of charcoal effected by the appellant. Charcoal is an article liable to tax under single point. No minimum turnover is necessary." Following the said decision, the Appellate Assistant Commissioner in the instant case has also h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 3, 4 or 5, as the case may be, whatever be the quantum of such turnover in a year: Provided that a dealer other than a casual trader or agent of a non-resident dealer purchasing goods the sale of which is liable to tax under sub-section (1) of section 3 shall not be liable to pay tax under this sub-section, if his total turnover for a year is less than one lakh of rupees." The words "or uses" were inserted by Act 78 of 1986 and became effective from January 1, 1987. The assessment year in the instant case being 1978-79, these words were not available for interpretation. The only words available there were "consumes such goods in the manufacture of other goods for sale or otherwise ". We however think that it will be useful to consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew shells do not tend to the making of the end-product. Goods used for ancillary purposes like fuel in the process of the manufacture, do not fall within section 5A(1)(a) of the Act. Cashew shells, therefore, do not attract levy of tax under the said section. The same is the position with regard to the lime shell and consumed stores, which have been used only in the maintenance of the kiln and the factory and not used in the manufacture of the end-product. The Revenue, therefore, was wrong in its contention on this aspect." Rejecting a further argument that the expression used was "either consumes such goods in the manufacture of other goods for sale or otherwise" and therefore the expression "or otherwise" is intended to denote a conjunc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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