STATE OF ANDHRA PRADESH vs ABDUL BAKHI AND BROS.

The Supreme Court held that under the Hyderabad General Sales Tax Act, 1950, the price paid for tanning bark is included in the taxable turnover as it is used in the manufacturing process of saleable commodities. The Court clarified that a dealer does not need to sell the same commodity purchased; rather, the purchase must be in the course of business for profit. The High Court's ruling that the tanning bark was not taxable was overturned, affirming that consumption in manufacturing does not exclude the respondent from being classified as a dealer.