9911796707
TMI Blog1991 (2) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings by the assessing authority, i.e., the Deputy Commercial Tax Officer, Coimbatore, dated December 31, 1979 for the year 1978-79. The taxable turnover was determined by the assessing authority in the following manner: Sale of packing cases Rs. 4,30,513.32 at 4% Sales of cut waste Rs. 35,951.72 at 4% Purchase value of timber consumed in the manufacture of packing cases Rs. 3,03,563.05 at 5% --------------- Total taxable turnover Rs. 7,70,028.09 Rounded off to Rs. 7,70,028.00 -------------- The assessing authority, while arriving at the taxable turnover, disallowed the claim of the assessee on the turnover of Rs. 35,951.72 as firewood and also assessed the sum of Rs. 3,03,563.05 under section 7-A of the Act at 5 per cent. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iability to tax under section 7-A(1)(a) of the Act. The case of the assessee was contested by the Revenue and besides controverting the submissions with regard to the applicability of section 7-A to the purchase of the goods, the claim with regard to the turnover of Rs. 35,952 as sale of firewood was also contested. It was maintained by the Revenue that even the turnover of Rs. 4,30,513.32 was liable to tax at 5 per cent single point under item 84 of the First Schedule to the Act and that the assessing authority had fallen in error by levying tax at 4 per cent multi-point on that turnover. The Tribunal upheld the claim of the assessee to the extent that the purchase turnover of Rs. 3,03,563 which have been subjected to tax at 5 per cent und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of wood into sized timber and had manufactured packing cases out of the same. It was argued that since the purchased timber was consumed into the manufacture of packing cases, the purchases were liable to be taxed under section 7-A of the Act. We cannot agree. Before the Tribunal, the plea of the assessee that he did not manufacture any packing cases but only sized the cut-ends into planks and shooks and sold them as such was accepted as a fact. It would be relevant to notice the following observations of the Tribunal in that behalf: ".........The assessing officer subjected the purchase turnover of cutends that are not supported by regular purchase bills to tax under section 7-A considering that the appellant manufactured out of those c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive who had made that report after examining the accounts of the assessee. The representative of the Revenue had stated in his report clearly that the planks and reapers used for packing cases were only sized timber and that the assessee did not manufacture any packing cases out of the cut-ends purchased by him and what was sold was only planks and shooks for use for the manufacture of packing cases. The Tribunal, therefore, opined: ".......In the appellant's case also we find that the cut-end woods purchased by the appellant has been cut into sizes of planks and shooks and sold for use for packing cases. This has been verified and found to be correct by the learned State Representative with reference to the accounts, purchase bills and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, in exercise of the revisional jurisdiction under section 38 of the Act, to ignore the finding of fact, particularly when we are of the opinion that the finding of fact neither defies logic nor can it be said to suffer from the vice of irrationality incurring the blame of being perverse. The opinion of the Tribunal that the mere sizing of the cut-end woods into planks and shooks could not be said to involve any manufacturing process by consumption of the cut-end woods and that the sized planks and shooks converted from the cut-end woods continued to be timber which was commercially not a different product, is based on proper appreciation of the material on record and does not call for any interference. We, therefore, find that the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X
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