Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2019 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 427 - HC - VAT and Sales TaxLevy of purchase tax - timber in log - timber in chiran - rate of tax - whether taxable at 16 % during period 01.02.2000 to 31.03.2000? - revisionist submitted that neither tax can be levied twice i.e. one as purchase tax and the other on its sale nor the rate of tax can be enhanced to 16% instead of 15 % - scope of Section 2(e1) of UP Trade Tax Act - HELD THAT:- No new commercial commodity come into existence which could be said to be a different commodity. Wooden log (timber) will remain wooden log (timber) in its original character even after cutting the same into sizes. Section 2 (e-1) of the UP Trade Tax Act shows that the process of cutting is not being included within the definition of manufacturing. Thus the process of cutting the wood from different sizes and converting the wood log into plank, no new commercial commodity comes into existence. Timber remain timber and after cutting the timber it does not loose its original identity of timber and it does not undergo any physical/commercial or any kind of change. The identity of timber remains same. Thus the process of cutting and converting timber for log does not come under the definition of manufacturing as provided under Section 2 (e-1) of the UP Trade Tax Act. Thus, the position of law, which emerges, is that after processing, some new commercial commodity must come into existence which may be identified differently from its original - In the case in hand, timber logs were purchased and the same were sliced converting into veneer (chiran) and the same were sold by cutting the wood log converting into veneer (chiran), no new commercial commodity come into existence. The Tribunal was not justified in confirming imposition of tax at the time of purchase of timber (as purchase tax), which has not been challenged by the revisionist and has accepted even in the best judgement assessment, by which its turnover was enhanced, the veneer (chiran), which has been obtained after cutting wood log into small sizes and have been sold, cannot be taxed again - the process of cutting and converting timber from wood log does not come under the definition of “Manufacturing” as provided under section 2(e- 1) of the Act. Revision allowed.
|