- (1.) Heard learned counsel for both the parties.
(2.) A direct conflict arises between the decisions of two benches of coordinate strength of this court on the interpretation of the words "eitherconsumes such goods in the manufacture of other goods for sale or otherwise" which occur in Section 6-A of the A. P. General Sales Tax Act as well as several other State enactments imposing purchase tax. So far as we could see, these very words occur in the Kerala Sales Tax Act, Tamil Nadu Sales Tax Act and Madhya Pradesh Sales Tax Act. In ganesh Prasud dixit v. CST Shah, J. , speaking for himself, Ramaswami and drover, JJ. construed the said words in the following manner: "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 Chagia, that by Section 7 the price paid for buying goods consumed in the manufacture of other goods, intended to be sold or otherwise disposed of, alone is taxable. We do not think that that is a reasonable interpretation of the expression 'either consumes such goods in the manufacture of other goods for sale or otherwise' It is intended by the Legislature that consumption of goods renders the price paid for their purchase taxable, if the goods are used in the manufacture of other goods for sale or if the goods are consumed otherwise. " (emphasis added)
(3.) According to this view, the clause would mean: (I) either consumes such goods in the manufacture of other goods for sale; or (Ii) consumes such goods otherwise.;