9911796707
TMI Blog1974 (12) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment agreed to sell to the respondent and the respondent agreed to purchase from the Government certain forest produce described in the first schedule to the said agreement situated in the area specified in the said schedule, and on the terms and conditions stated in the agreement. Briefly stated the first schedule shows that the said forest produce consisted, in the area not meant for felling, of standing trees of teak and other first class species bearing marginal hammermark on a blaze at base and at breast height and standing miscellaneous trees bearing a marginal hammer-mark on the blaze only. In the area meant for clear felling the said forest produce consisted of standing trees of teak and other first class species marked as set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontract and the said clause provided further for a penalty for every such act. The total turnover of sales, which was not in dispute, amounted to Rs. 82,986, out of which sales of firewood, which were exempt from the tax, amounted to Rs. 8,796. The respondent claimed that the remaining sales of Rs. 74,188 were resales of timber, which was purchased by him from the Divisional Forest Officer, who was a registered dealer, and the said sales were exempt from tax. The contention of the respondent before the Sales Tax Officer was that the purchase of timber having been made from a registered dealer, he was entitled to deduct from his turnover these resales under section 8(ii) of the said Act. The Sales Tax Officer disallowed this claim on the gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er was sold by the Divisional Forest Officer and it was only when the hammer-marks on the logs were made that the timber became available. It may be pointed out that the only manufacturing process which the respondent was supposed to have carried on was felling of timber trees before taking delivery of the timber in the coupe. On the facts set out above, two questions have been referred to us for our consideration and they are as follows: "(1) Whether on the interpretation of the terms of the contract of the respondent with the Divisional Forest Officer, Yeotmal Division, the Honourable Tribunal was justified in holding that the subject-matter of contract was hammer-marked logs and not the marked standing trees as stated in the first sched ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, there was a sale to the respondent of all the standing trees in the coupe marked as set out in the first schedule. In support of this argument, he placed strong reliance on clauses (1) and (2) of the said agreement and on the contents of the first schedule, to which we have already made reference. The difficulty in the way of Mr. Naik is, however, that the contract does not end with the first schedule and the condition contained in the aforesaid clause 7(iv), which we have already set out, and which is admittedly a condition of the contract, provides that no timber shall be removed by the contractor, viz., the respondent, from his coupe unless it is hammer-marked at stump site by a suitable device by the forest department. The provision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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