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TMI Blog2008 (11) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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. - 859 of 2006 - - - Dated:- 12-11-2008 - PRABHA SRIDEVAN AND SASIDHARAN K.K. , JJ. The judgment of the court was delivered by Mrs. PRABHA SRIDEVAN J. The assessee is a manufacturer of cycle parts. They have effected local purchase of kerosene, which they claimed, they had used for the manufacture of their goods. The Revenue levied tax under section 7A on the assessee. Aggrieved by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted as consumed in the manufacture of goods but only for the manufacture of goods and therefore, the items were not taxable under section 5A of the relevant Act. The conclusion of the Tribunal was confirmed by the High Court and also by the Supreme Court. The honourable Supreme Court held thus (at page 322 of 69 STC): . . . The Tribunal, however, held that the cashew shells had been used only as fuel in the kiln for the manufacture of tiles and other goods and, hence, clause (a) of section 5A(1) of the Act, was not satisfied, there being no consumption of the cashew shells in the manufacture of other goods or otherwise. The Tribunal was of the opinion that these were used for the manufacture. The Tribunal also held that there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the manufacture of other goods for sale or otherwise. After November 6, 1997, as amended by Act 60 of 1997, section 7A(a) reads as: consumes or uses such goods in or for the manufacture of other goods for sale or otherwise . Therefore, 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 ker ..... X X X X Extracts X X X X X X X X Extracts X X X X
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