TMI Blog1974 (7) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... Orissa but instead of doing so he converted them into sized wood and then resold the same?" 2.. The undisputed facts are that the petitioner purchased logs from registered dealers free of tax to the extent of Rs. 29,551.50 for resale in Orissa. The logs were cut into sizes in saw mills and then were resold in Orissa. All the taxing authorities held that by conversion of logs into sized wood the petitioner contravened section 5(2)(A)(a)(ii) of the Act. 3.. Section 5(2)(A)(a)(ii) of the Act runs thus: "In this Act, the expression 'taxable turnover' means that part of a dealer's gross turnover during any period which remains after deducting therefrom- (a) his turnover during that period on......... (ii) sales to a registered dealer o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate of Haryana[1973] 32 S.T.C. 623 (S.C.). 6.. Bereft of authorities we propose to analyse the meaning of the word "timber" as understood in common parlance, specially in commercial circles. It is to be emphasised that all that is wood is not timber though timber is wood. In common parlance timber ordinarily means long logs of wood used for purposes of beams and pillars in the construction of houses and such similar uses. After the felling of big trees and the chopping off of the branches of those trees the trunk of the tree is called timber. A very long piece of log may be cut into different pieces. If the pieces after cutting still remain long so as to be used as beams, pillars and such similar uses, the cut pieces would still be calle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od. The essential characteristic of timber as a commercial commodity is lost after such conversion. 7.. We would now proceed to examine the authorities cited on either side. In Shaw Bros. and Co. v. State of West Bengal[1963] 14 S.T.C. 878., a learned single Judge of the Calcutta High Court held that when planks are made from logs or damaged wood, a new kind of commodity is manufactured because plank made out of timber is not timber in its nascent state. In Bachha Tewari v. Divisional Forest Officer[1963] 14 S.T.C. 1067. , the same learned Judge held that when timber is chopped off and converted into firewood it would not be treated as timber. On the test laid down by us, both these decisions were correctly decided. In State of Oris ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Andhra Pradesh in common parlance the word "timber" takes within its ambit planks, rafters, cut sizes, etc. At page 315 their Lordships observed thus: "What must follow is that planks, rafters, cut sizes, etc., obtained from logs of wood according to the popular or commercial usage or the interpretation placed by the administration is 'timber' within the meaning of item 63 of Schedule I to the Act." On the analysis given by us we are unable, with respect, to subscribe to this conclusion. This decision is also distinguishable as the petitioners in that case asserted in their affidavits that timber in the commercial field means the planks, the rafters and the cut sizes and the Government did not offer any convincing denial to the contrar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er in case of violation the proviso would be applicable and price of the goods so utilised would be included in the taxable turnover of the dealer. 9.. On the aforesaid analysis, we are clearly of the opinion that the taxing authorities acted contrary to law in invoking the proviso without indicating the nature of the conversion of original timbers. The Tribunal is to gather further facts as to in what manner the original timbers were sized and if such sizing changes the essential character of the timber. 10.. The question referred to us is modified as follows: "Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the proviso to section 5(2)(A)(a)(ii) is applicable inasmuch as the assessee purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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