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"Explanation. - For the purpose of this section, -

(i) the words 'raw material' mean any material from which another product can be made through the process of manufacture either by itself or in combination with other raw materials;

(ii) the words 'component part', 'sub-assembly part' and 'intermediate part' mean the article which forms an identifiable constituent of the finished product and which along with other goods make up the finished product."

7. The effect of the above sub-clause (1) of section 5-B, therefore, is that if a manufacturer who is a dealer, purchases raw material, component part, sub-assembly part, intermediate part, consumables and packing material in order to manufacture other goods inside the State and if the above purchases are made from dealers within the State, the concessional rate of tax of 4 per cent will be attracted as mentioned in the provision. The proviso to section 5-B states that the dealer who is selling these types of goods to the manufacturers, is to furnish to the assessing authority in the prescribed manner a declaration duly filled in and signed by the dealer to whom the goods are sold, containing the prescribed particulars in the prescribed form obtained from the prescribed authority. These rules are contained in the A.P. General Sales Tax Rules, 1957, made by the State Government in exercise of the powers under section 39. Rule 30-A as amended by the Notification in G.O. Ms. Nos. 868, Revenue (C.T. II) dated 29th August, 1989, shows that the existing rule 30-A is substituted by a new rule which reads as follows :

(3) to provide that the rate of interest on delayed payments will be the same as Bank rate."

11. Apart from the above the learned counsel for the petitioners have also placed reliance on the historical background contained in the book "Scheme for levy of Concessional Tax on Component Parts in Andhra Pradesh" by Sri S. Suri Babu, which reads as follows :

"1 : 0 Historical background :

1 : 1 Most of the intermediates and components required by the manufacturers are scheduled goods and are subjected to higher rates of tax. If those items are purchased from other States they will bear only the incident of Central sales tax which is always lower than the State rate. Since most of the components are of high value and even after meeting transport and other incidental costs it would be cheaper for the manufacturers in Andhra Pradesh to pay their requirements from other States instead of purchasing them locally.

12. On the basis of the above material, it is contended that the benefit for concessional tax is intended to be given to the manufacturers in Andhra Pradesh in respect of purchases from dealers in Andhra Pradesh, provided such purchases relate to raw materials, components parts, sub-assembly parts, intermediate parts, consumables and packing materials which are used in the production of the ultimate goods. In this context, the learned counsel differentiated between the goods which, after a physical or chemical process becomes part of the ultimate product and also goods which are not directly connected with the end-products but are used during the manufacturing process, that is to say, which are applied or used in the machinery which is involved in manufacturing the products. It is stated that not only these goods such as raw materials, component parts, sub-assembly parts, intermediate parts, consumables and packing materials which can be traced in the ultimate end-product but also such of those items which are used for working the machinery which produces the end-product, must be deemed to fall under the concessional rate of tax under section 5-B. For this purpose, reliance is placed upon several decisions of the Supreme Court rendered in the context of section 8(3)(b) of the Central Sales Tax Act read with rule 13 of the Central Sales Tax (Registration and Turnover) Rules, 1957.

20. We have earlier referred to the other argument based on the preamble to the amending Act and also based on the historical background referred to by the petitioners' counsel. We do not think that the preamble to the amending Act as set out in the Bill No. 10 of 1989 and the historical background referred to by the petitioners' counsel afford any assistance in the interpretation of the word "consumable" in view of the clear meaning attributed to the said word by the Supreme Court.

21. Learned counsel for the petitioners raised a new contention after the judgment was reserved and at the time of pronouncing judgment. It is pointed out that long before the amendment in 1989, the Act was amended by the Third Amendment Act (A.P. Act 21 of 1987) and it was at that time section 5-B was amended by introducing the words "raw material, component part, sub-assembly part, intermediate part, consumables and packing materials" in the place of the word "component part". It is contended that between 1987 and 1989 certain specific schemes were brought into force to attract the concessional levy under section 5-B and that it is possible that some of those schemes might have included "gas" and "diesel oil" as goods attracting concessional tax. On that assumption it is argued that if "gas" and "diesel oil" were already included in the specific schemes and during 1987-89, the replacement of the provisions introduced in 1987 by the provisions introduced in 1989 would indicate that the Legislature treated "gas" and "diesel oil" as consumables. Learned counsel wanted the learned Government Pleader to look into the schemes and find out if this was the factual position. We may state that there was no such pleading in the writ petition nor can the petitioners throw this burden on the respondent. Further, when the Supreme Court has interpreted the word "consumes" clearly in the Kerala case, it will not be permissible to accept the above contention particularly in the absence of the material showing "gas" and "diesel oil" as having been included in some schemes between 1987 and 1989.