Sabyasachi Mukharji, J. - (1.) This is a petition for leave to appeal under Art. 136 of the Constitution of India from the judgment and Order of the High Court of Kerala, dated Dec. 9, 1986. The High Court by the impugned judgment dismissed the revision cases, which were brought at the instance of the revenue.
(2.) The assessee is a manufacturer and dealer in tiles, terra-cotta wares and ceramics. It was assessed to tax under S. 5A of the Kerala General Sales Tax Act, 1963, hereinafter called 'the Act' for the assessment years 1974-75, 1975-76 and 1976-77 among other things on the purchase turnover of the cashew shells and consumed stores, lime shells etc., purchased by the assessee-Company. These are in abundant supply in that area. These are used, as it appears from the judgment of the High Court and from the facts found by the Tribunal, as fuel in the kiln in the factory of the assessee for the manufacture of tiles and others. It was sought to be assessed to tax. The assessee contended that cashew shells were used by them as fuel for (emphasis supplied) manufacturing products referred to above and, therefore, by virtue of notification S.R.O. 732/73 the purchase turnover of cashew shells were exempt from tax. In the alternative, it was contended by the assessee that the purchases in question were not liable for levy of tax since none of the conditions prescribed in cl. (a), (b) or (c) of S. 5A of the Act were satisfied.
(3.) The assessee had also purchased during the relevant years in question, lime shell and certain stores described as consumed which had been used in the maintenance of the kiln and the factory. These purchases were also claimed as non-taxble in view of the conditions prescribed in Cl. (a), (b) or (c) of S. 5A of the Act, being not satisfied. The assessing authority and the First Appellate Authority overruled the contentions of the assessee and brought these purchases to tax under S. 5A(1) of the Act.;