9911796707
TMI Blog1973 (11) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the Assessing Authority was upheld though with a little modification by the highest revisional authority. An application was made under section 22(1) of the Punjab General Sales Tax Act, 1948 (hereinafter referred to as the Act) for referring certain questions of law arising out of the order of the Financial Commissioner (Taxation), Punjab, but the same was dismissed as time barred by the Presiding Officer, Sales Tax Tribunal, Punjab. The matter was brought to this court by filing petitions under section 22(2) of the Act for issuing direction to the Sales Tax Tribunal, Punjab, to refer the question of law, which were allowed by D.K. Mahajan and B.R. Tuli, JJ., on 28th October, 1970. Thereafter the matter again went back to the Pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring any year first exceeds the taxable quantum." The assessee-firm has been assessed as a dealer who manufactures goods for sale. The contention of Mr. J.N. Kaushal, Senior Advocate, was that, in the circumstances and on the facts of this case, the assessee-firm could not be held a manufacturer of goods and that it had to be assessed as a general dealer. After giving our thoughtful consideration to the entire matter, in the light of the submissions made before us by the learned counsel for the parties, we are of the view that there is considerable force in the contention of the learned counsel for the assessee-firm. From the statement of the case we find that the case of the department was that the assessee was an authorised contractor en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing more is necessary and there must be transformation; a new and different article must emerge having a distinctive name, character or use." The trees which are felled by the assessee in the jungle are wood and can be either timber or fuel wood. By chopping off the branches or by cutting it into small pieces, the nature is not changed nor does such a transformation take place by which a different article emerges having a distinctive name or character. After felling the tree when it is sold as such or after cutting it into pieces, it remains fuel wood. The trees by the name of beri, kikar, dhak, jand, etc., are used only as fuel wood and after felling the same their nature would not change and still they would only be used as firewood. Eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring process and, therefore, firewood is a manufactured article. With great respect we are unable to agree with this view for the reasons recorded in the earlier part of the judgment. In the light of the discussion above we hold that the business of firewood carried on by the assessee-firm could not be called a manufacturing business nor could the assessee-firm be called a manufacturer and the liability of the assessee-firm to pay the tax arose at Rs. 50,000. Consequently, the answer to the question referred to us is returned in the negative, i.e., against the department. The assesseefirm shall have its costs in both the references separately which are assessed at Rs. 150 each.
Reference answered in the negative. X X X X Extracts X X X X X X X X Extracts X X X X
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