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TMI Blog2006 (6) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... mainly of sale of waste materials like steel scrap and other scrap items and used as unserviceable articles. On examination of the books of account it was noticed by the assessing authority that the assessee had paid water charges amounting to Rs. 3,92,111.53 during 1981-82. The water was consumed by the assessee otherwise than by way of sale and that the return filed by the assessee had not shown the amount under taxable item though the same is liable to tax under section 5A of the Act. Aggrieved by the order of the assessing authority, the assessee took up the matter in appeal before the Deputy Commissioner (Appeals). Appeal was dismissed. The assessee then took up the matter in appeal before the Tribunal. The appeal was partly allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is used for the manufacture of end-product the same will be exigible to tax and would fall under section 5A. We may extract section 5A for easy reference. 5A. Levy of purchase tax. (1) Every dealer who, in the course of his business, purchases from a registered dealer or from any other person any goods, the sale or purchase of which is liable to tax under this Act, in circumstances in which no tax is payable under subsection (1), (3), (4) or (5) of section 5 and either, (a) consumes such goods in the manufacture of other goods for sale or otherwise; or (b) uses or disposes of such goods in any manner other than by way of sale in the State; or (c) despatches them to any place outside the State except as a direct result of sale or p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 appears to us to be erroneous on a plain construction of the provision. The intention of the Legislature, it appears to us, is to bring to purchase tax in either event of consumption of goods in the manufacture of goods for sale or consumption of goods in any other manner. O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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