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TMI Blog2007 (1) TMI 530X X X X Extracts X X X X X X X X Extracts X X X X ..... hority taxed the turnover of wood-wool at eight per cent treating it as unclassified item. Order of the assessing authority has been confirmed in appeal. The Tribunal, however, has accepted the plea of the dealer/opposite party (hereinafter referred to as "the dealer") and held wood-wool liable to tax at six per cent as product of timber. Heard learned counsel for the parties. Relevant Notification No. ST-2-5785/X-10(1)-80-U.P. Act XV/48Order-81, dated September 7, 1981 relating to the product of timber or wood-wool is reproduced herein below: Notification No. ST-2-5785/X-10(1)-80-U.P. Act XV/48-Order-81, dated September 7, 1981. Sl.No Description of goods Point of tax Rate of tax 39 Products of bamboos, timber or wood ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een the things and its product. The thing must be productive before it can have a product. In other words, something which naturally and directly grows out of another thing can alone be called a product of that other thing. Therefore, a product of timber must relate to the productivity from timber, i.e., something produced out of timber. The cut sizes of wooden batton in question are, therefore, according to the said dictionary meaning products of timber. There is yet another reason to come to the same conclusion and it is this that the wooden batton in question is a thing which is produced by an action, operation or work by cutting the timber into certain specified sizes. Therefore, when wooden batton is produced out of wood by some actio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise, Coimbatore v. Protein Products of India Ltd. reported in [1989] 74 STC 98 (SC). The question for consideration before the apex court was whether ossein prepared by dissolving mineral part of bones with phosphoric acid and gelatine prepared by treating ossein with alkali, falls under the bone product. The apex court observed as follows: ". . . The word 'product' is defined in Webster's Comprehensive Dictionary as 'anything produced or obtained as a result of some operation or work'. The expression 'bone products' therefore, merely means anything produced or obtained from bones. Whether such derivation is by a simple physical process or by a chemical reaction would seem to make no difference t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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