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TMI Blog1971 (2) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... e party its contention was that the packing boxes could not be regarded as products of timber and should have been assessed at the rate of 2 per cent. only applicable to unclassified items. The contention was not accepted and the appeal was dismissed. On a revision being filed by the said opposite party, the revising authority aforesaid held that the packing boxes could not be regarded as products of timber and he, therefore, allowed the revision and reduced the tax by applying the rate of 2 per cent. The applicant, namely, the Commissioner, Sales Tax, U.P., thereupon applied for reference being made to this court. The question referred by the Additional Revising Authority is: "Whether boxes made of chir are timber products as contemplate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thus leaves, fruits and flowers of a tree will not come within the purview of products of timber though bark will be a product of timber. The second thing which the amendment has done is to confine timber to the wood of certain classes of trees including chir (pine), which means that packing boxes of chir will be covered by the notification provided they can be regarded as products of wood of chir or pine trees. The material question for consideration, therefore, is whether packing boxes made by assembling planks of chir wood with the help of nails can be regarded as products of chir wood. In its revisional order the Additional Revising Authority observed as follows, in holding that packing boxes cannot be regarded as products of timber: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, appear that the meaning of "product" is not confined to something produced by nature or a natural process and unless there is something in the subject or context warranting a restriction of the meaning of "product" to something produced by nature or a natural process, there will be no justification for not regarding a thing produced out of wood by any action, operation or work (sic). In that case packing boxes which are nothing but planks of chir wood assembled together in a particular form with the help of nails will obviously be products of chir wood, that is, timber. The learned counsel for the opposite party has contended that where two interpretations of a provision in the taxing statute are possible, the one favouring the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pear to virtually nullify the levy of sales tax on timber products at a higher rate as compared to that on unclassified goods. For it is difficult to imagine of any produce from wood by nature or a natural process other than bark. Learned counsel for the opposite party could only mention planks by way of illustration. But planks cannot be regarded as produce by nature or a natural process. They came into being by cutting and sawing to desired thickness and measurements. It will thus appear that the word "products" was intended to be used in its full and comprehensive meaning and not in the narrow and restricted meaning of something produced by nature or a natural process. In Avadh Sugar Mills Ltd. v. Sales Tax Officer[1968] 21 S.T.C. 295. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... July 31 notification is No. ST-4126/X-950(12)-1967. It amends the two notifications mentioned in the question referred to this court. The amendment reads: "For the entry against serial number 3 of the aforesaid notification, the following shall be substituted: "3(a) Bamboo and its products other than furniture (b) Products of timber other than furniture." This amendment unambiguously shows that the two notifications mentioned in the question referred to us were intended by the rulemaking authority to include even furniture in the word "products". The July 31 notification now excludes furniture from the ambit of the word "products". It will necessarily follow that other things made of timber would be included in the word "products". S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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