TMI Blog1981 (7) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... id. The assessee purchases logs and sells such logs to customers some of whom may require the service of sawing. Whether the turnover of timber must include such sawing charges also was the main question. Such charges, as seen from the bills, came to a sum of Rs. 33,529.80. The assessing authority issued a pre-assessment notice proposing to tax sawing charges shown in the bill also as part of the turnover. The other claim concerned the purchase tax leviable on the purchases of timber by the assessee, corresponding to sales of scantlings and sawn timber. The logs used for that purpose would be treated as consumed and therefore in respect of purchases of logs tax under section 5A would be leviable. There is a dispute as to the quantum of pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f turnover taxable under section 5A the assessing authority took the view that the entire turnover of purchases was assessable. The appellate authority accepted the case of the assessee. He found that the sawing of timber had nothing to do with the turnover of the assessee and thus the whole of the sawing charges had to be excluded. He also accepted the statement of the assessee as to the quantum of timber used for converting into scantlings and sawn timber sold as such and on that basis reduced the turnover liable to tax under section 5A to the sum of Rs. 3,950.60. The Appellate Tribunal, before whom the matter was taken up in revision by the department, accepted the contention of the department. Adopting the reasoning of the Sales Tax Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were not liable to be taxed. Neither the assessing authority nor the appellate authority doubted the truth of this case, let alone enquire into the truth. The question of enquiry would arise only if the assessing authority was not prepared to accept such a case. The authority has assumed that the case was true but has examined the liability to tax nevertheless. The assessing authority has expressed the view that since the sawing operations were prior to delivery the charges for such sawing would become part of the turnover. This is the argument repeated by the Tribunal. We are called upon to examine the correctness of this approach. 5.. Turnover is defined in section 2(xxvii) thus: "'Turnover' means the aggregate amount for which go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... latter dealer but not in that of the former." Turnover is evidently the aggregate amount for which goods are either bought or sold. This aggregate amount would include anything done by a dealer in respect of the goods sold, at the time of or before the delivery thereof as mentioned in clause (i) of explanation (2). No doubt read by itself the words "sums charged for anything done by the dealer in respect of the goods sold" are quite wide in their amplitude. But the explanation does not stand by itself. It is an explanation to the definition and therefore it has to be read in the context of the definition of the term "turnover". What the aggregate includes is what is indicated by the main part of the definition. The aggregate is necessari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before delivery" without noticing the real purport of the explanation. There was no scope for assessing the charges for sawing included in the bills. The assessee must succeed in relation to the turnover of Rs. 33,529.80. 6.. The only question that remains concerns the remit by the Tribunal to the assessing authority to reconsider the taxability under section 5A. The Tribunal was not prepared to accept the case of the department that the entire turnover of purchase of timber was liable to be taxed under section 5A. Evidently that cannot be, for, even according to the Tribunal and consistent with what we have found here a part of the turnover represents sale of logs as logs. What the quantum of that turnover is, is another question. Whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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