SIPANI FIBRES Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE question to be considered pertains to the period April 1, 1984 to March 31, 1985, under the provisions of the Karnataka Sales Tax Act, 1957 ("the Act" for short ). The petitioner purchased HDPE granules during the aforesaid year, by furnishing declaration under "form 37" read with section 5-A of the Act, to the effect that the HDPE granules are for use by the petitioner as inputs in the manufacture of other taxable goods inside the State for sale. The petitioners, ultimately manufactured HDPE fabrics from which, a part was utilised to further manufacture "hdpe woven sacks".

(2.) INITIALLY , out of the HDPE granules, "hdpe tapes" are manufactured; these tapes are used to manufacture HDPE fabrics, out of which, a portion was used to manufacture HDPE sacks. HDPE fabrics and the sacks were sold by the petitioner.

(3.) THE learned counsel for the petitioner advanced two contentions :