The judgment of the Court was delivered by

MEHTA, J. - At the instance of the assessee, the Gujarat Sales Tax Tribunal has referred the following question to us for our opinion under section 69 of the Gujarat Sales Tax Act, 1969 :

"Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that kathi purchased and used by the applicant for packing of the goods for sale was not purchased and used as consumable stores in the process of manufacture of goods for sale ?"

The assessment period with which we are concerned in this reference is S.Y. 2028. The assessee is carrying on the business of manufacturing crockery and carborundum and is selling the same as a registered dealer under the Gujarat Sales Tax Act, 1969. The assessee had purchased kathi (twine) worth Rs. 12,867 on the certificate that the said article was required for use in the manufacture of goods for sale. The article in question was used for the purpose of packing goods manufactured by the assessee and sold thereafter. The Sales Tax Officer levied purchase tax on purchase of the said article in question under section 16 of the Act and he was of the opinion that those goods