T.L. Viswanatha Iyer, J.

1. These revision cases are at the instance of the Revenue and relate to the assessments made on the respondent-assessee for the assessment years 1974-75, 1975-76 and 1976-77. The assessee is a manufacturer of and dealer in tiles, terra-cotta wares and ceramics. The assessee, who is carrying on his business in Quilon, purchases cashew shells which are in abundant supply in that area, for being used as fuel in the kiln in his factory for the manufacture of the tiles and others. The assessee contended that the purchase turnover of cashew shells was exempted from levy of tax under Section 5A of the Kerala General Sales Tax Act, 1963 (the Act in short), under Notification No. SRO 722/73 issued by the Government of Kerala under Section 10 of the Act. Alternately the assessee contended that the purchase in question was not liable for the levy of tax under Section 5A since none of the conditions prescribed in Clause (a), (b) or (c) of Section 5A(1) was satisfied.

2. The assessee had also purchased, during the years, lime shell and certain stores described as consumed stores, which had been utilised in the maintenance of the kiln and the factory. These purchases were also claimed as non-taxable in view of the conditions prescribed in Clause (a), (b) or (c) of Section 5A(1) being not satisfied.

3. The assessing authority and the first appellate authority overruled the contentions of the assessee and brought these purchases to tax under Section 5A(1). In second appeal, the Tribunal did not accept the case of the assessee regarding the non-taxability of the purchase turnover of cashew shells under Notification No. SRO 722/73. 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) was not satisfied, there being no consumption of the cashew shells in the manufacture of other goods for sale or otherwise. The Tribunal also held that there was no disposal of the lime shells or the consumed stores, which were used up for the maintenance of the factory and kiln and that there was also no consumption of those goods in the manufacture of other goods for sale or otherwise. In this view of the matter the Tribunal declared the purchases of these items as not taxable under Section 6A of the Act. Before us counsel for the Revenue reiterated the contentions raised by the Revenue before the Tribunal.

4. Section 5A(1) truly read "speaks of goods consumed in the manufacture of other goods for sale or goods consumed in the manufacture of other goods for purposes other than sale" [Deputy Commissioner of Sales Tax v. Pio Food PackersThe cashew shells had admittedly been used as fuel in the kiln. They had not been used as raw material in the manufacture of any goods for sale by the assessee. They have not, therefore, been used in the manufacture of any goods for sale, but only as an aid in the manufacture of goods by the assessee. Consumption in the manufacture of goods is of raw material or of other components which go into the making of the end-product. Goods used for ancillary purposes like fuel in the process of the manufacture of goods are not comprehended within Section 5A(1)(a). We, therefore, hold that the purchase of the cashew shells does not attract levy of tax under Section 5A(1)(a). The same is the position with regard to the lime shell and consumed stores, which have been used only in the maintenance of the kiln and the factory.

5.The further question raised is that these goods have been disposed of otherwise than by way of sale within the State and hence liable to tax by virtue of Section 5A(1)(b). We have, therefore, to examine whether there is any disposal of these goods in any manner otherwise than by way of sale within the State. We have had occasion to examine the precise meaning of this sub-clause in our decision in State of Kerala v. Ocean Wealth 1986 KLN 699, wherein we have concurred with the decision of the Karnataka High Court in K. Cheyyabba v. State of Karnataka [1980] 45 STC 1 [LQ/KarHC/1979/84] and Goodyear India Limited v. State of Haryana and held that disposal means transfer of title in the goods to any other person. Sub-clause (b) requires that the goods in question should be transferred to some other person otherwise than by way of sale in the State. In the absence of such transfer, there is no disposal of the goods as known to law and hence no liability to tax. There is admittedly no transfer of the cashew shells, the lime shell or the consumed stores in this case, inasmuch as they were used up by the assessee himself as fuel in the case of the cashew shells and in the maintenance of his kiln and factory in the case of the others. Sub-clause (b) of Section 6A(1) is therefore not attracted and hence the purchase of these items does not attract any tax under Section 5A.

No other points are raised in these tax revision cases. They are accordingly dismissed.