9911796707
TMI Blog1995 (7) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... cloth. The assessment year involved in this case is 1976-77. During the relevant assessment year, the crucial word used in section 7-A is that the raw materials purchased should be "consumed " in manufacturing the end-product. Though it was by later amendment the word used was introduced, but during the relevant assessment year the crucial word in section 7-A is "consumed". Hence the point for consideration is whether the assessee has consumed the raw materials purchased, viz., the art silk yarn in the manufacture of art silk cloth. The Kerala High Court in Deputy Commissioner of Sales Tax (Law), Board of Revenue (Taxes) v. Pio Food Packers [1978] 41 STC 364 had an occasion to consider this aspect. According to the fact arising in the abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed and used in the manufacture of some other goods cannot be said to have been consumed in the process of manufacture of other goods." 3.. If we consider the fact arising in this case, according to the test laid down by the Kerala High Court in the decision cited supra, we have to hold that the identity of the art silk thread was not got lost even after the cloth was woven with the said thread. It means the identity of the silk thread would well remain as it is even after the cloth was manufactured out of the art silk yarn. 4.. According to the facts arising in State of Tamil Nadu v. K. Narayanaswamy Chetty and Sons (T.C. No. 1183 of 1979), the assessees purchase turmeric from agriculturists, convert it into powder and sell the same, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f other goods for sale or otherwise. No doubt, in this case, office files were manufactured by the dealer. But in that manufacture, the folded clips were not consumed, but were merely used or utilised. The language used in the section is "consumes such goods in the manufacture of other goods" and not "used such goods in the manufacture of other goods". Since the folded clips were not consumed in the manufacture of office files, the purchase turnover does not attract tax under section 7-A of the Act. 6.. Thus considering the fact that the art silk yarn purchased by the assessee was not consumed in the manufacture of art silk cloth, by following the principles adumbrated in the abovesaid decisions, cited supra, we hold that tax under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
