ISMAIL, C.J.

This is an appeal against the order of the Board of Revenue (Commercial Taxes), Madras, dated 30th May, 1977, suo motu revising the order of the Appellate Assistant Commissioner-II, Madras, dated 7th June, 1972. The appellant was purchasing old silver articles and silver from customers and manufacturing silver articles out of the same and selling the same. The question that came to be decided by the Board was whether the appellant was liable to purchase tax under section 7-A of the Tamil Nadu General Sales Tax Act, 1959, or not. Section 7-A of the Act reads as follows :

"Levy of Purchase tax. - (1) Every dealer who in the course of his business purchases from a registered dealer or from any other person, any goods (the sale or purchase of which is liable to tax under this Act) in circumstances in which no tax is payable under section 3, 4 or 5, as the case may be, and either, -

(a) consumes such goods in the manufacture of other goods for sale or otherwise; or

(b) disposes of such goods in any manner other than by way of sale in the State; or

(c) despatches them to a place outside the State except as a direct result of sale or purchase in the course of inter-State trade or commerce,

shall pay tax on the turnover relating to the purchase aforesaid at the rate mentioned in section 3, 4 or 5, as the case may be, whatever be the quantum of such turnover in a year :

Provided that a dealer (other than a casual trader or agent of a non-resident dealer) purchasing goods [the sale of which is liable to tax under sub-section (1) of section 3] shall not be liable to pay tax under this sub-section, if his total turnover for a year is less than fifty thousand (sic) rupees.(2) Notwithstanding anything contained in sub-section (1), the provisions of section 7 shall apply to a dealer referred to in sub-section (1) who purchases goods [the sale of which is liable to tax under sub-section (1) of section 3] and whose total turnover for a year is not less than fifty thousand (sic) rupees but not more than one lakh of rupees; and such a dealer may, at his option, instead of paying the tax in accordance with the provisions of sub-section (1), pay tax at the rates mentioned in sub-section (1) of section 7.

(3) Every dealer liable to pay purchase tax under sub-section (1), shall, for the purposes of this Act, be deemed to be a registered dealer." *

It is not necessary to refer to the proviso to section 7-A(1)(a) for the purpose of considering the point raised. There is no dispute that the conditions contained in the opening part of sub-section (1) are satisfied. The only question that requires to be considered is, when the appellant purchased old silver jewellery and silver and made them into new jewellery or silverware whether the case can be brought within the scope of section 7-A(1)(a) or not. The expression used in section 7-A(1)(a) is

"consumes such goods in the manufacture of other goods for sale or otherwise" *

. Certainly the silver jewellery or the old silverware purchased by the appellant had been consumed in the manufacture of new silverware or new silver jewellery. But what the learned counsel for the appellant contends is whether they are old jewellery or new jewellery or whether they are different kinds of jewellery, still the jewellery continued to be silver jewellery and, therefore, section 7-A(1)(a) is not attracted. We are of the opinion that this argument has no substance whatever. The section uses the expression "goods" and the meaning of the expression "goods" has to be understood only in the context of the use of the expression in the particular enactment, namely, the Tamil Nadu General Sales Tax Act, 1959. There is First Schedule to this Act which gives a list of goods in respect of single point tax leviable under sub-section (2) of section 3. A perusal of that list will clearly show that the articles are not listed according to the source material out of which they are made, but according to their independent