DEPUTY COMMISSIONER OF SALES TAX (LAW),BOARD OF REVENUE (TA vs THOMAS STEPHEN & CO . LTD. QUILON.

The Supreme Court interpreted Section 5A(1) of the Kerala General Sales Tax Act, 1963, holding that goods used as fuel in the manufacturing process do not qualify as consumption in the manufacture of other goods. The Court affirmed the Tribunal's decision that cashew shells, used merely as fuel, and lime shells, used for maintenance, do not attract tax under Section 5A(1). The High Court's ruling was upheld, dismissing the Revenue's special leave petitions.