1996 (11) TMI 415

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... r the respondent.   --------------------------------------------------   ORDER   The question in this case is whether velavelan wood and karuvelan wood supplied by the assessee to Seshasayee Paper and Boards Limited, Pallipalayam and other companies for manufacture of pulp can be said to be firewood and as such exempt from sales tax. The Tribunal held that the kind of wood suppli .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nment. The High Court following the decision in A.H.K. and Company v. State of Tamil Nadu [1980] 46 STC 117 (Mad.) came to the conclusion that even though in the agreement the parties described the wood as firewood, the supply of wood was for making pulp. The agreement clearly indicated that neither of the two parties intended that the timber should be used as firewood. The High Court held that th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t was not being sold as firewood at all. The exemption is granted to firewood meant to be as firewood. The exemption cannot be extended to sales of wood for manufacture of rayon even though such wood is capable of being used as firewood and is generally used as such. The exemption is obviously for the benefit of people who buy or sell firewood for the purpose of using the same as firewood. This e .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X