1978 (5) TMI 105

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..... timber, etc. Timber and bamboo and their products were taxable at single point under Notification No. 3393/X-1012-1962. The relevant items of the notification were timber, bamboo and their products. On 31st July, 1967, a notification was issued under section 3-A of the Act, which was to the following effect: "With effect from August 1, 1967, the turnover in respect of TIMBER, that is to say, the .....

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..... ber, were taken out of this item and made taxable under a different item at a lower rate. The assessee's case was that the "ballies" sold by him were not liable to be taxed at the rate of 6 per cent but at a lower rate. The Sales Tax Officer rejected this contention and treating ballies as timber, taxed them at the rate of 6 per cent. On appeal being filed, the appellate authority held that, as ba .....

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..... the description of the word "timber" as used in the notification. He has in support of this contention relied on a decision of this Court in the case of Singh Engineering Works Private Ltd. v. Commissioner of Income-tax, Kanpur1978 U.P.T.C. 322. This case has no application to the facts of the present one. There the assessee manufactured iron bars and rods out of ingots manufactured from scrap, in .....

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..... sense but involved processing in order to change the shape or size of the raw material. Here ballies are obtained by cutting trees and, inasmuch as cut timber trees are also included in the entry relating to timber, it is idle to go into the question as to whether an act of cutting trees is processing or not. This controversy in view of the phraseology of the notification does not arise for consid .....

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..... nt case, as the ballies were obtained by cutting timber trees and as cut timber is also included in the notification, it is not possible to hold that ballies did not come within the category of timber, and came to be included in the category only after 1971 when the inclusive words were introduced in the notification. We, accordingly, answer the question in the affirmative, in favour of the depar .....

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