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TMI Blog1995 (9) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... on the above turnover. On appeal, the Appellate Assistant Commissioner remitted back the assessment to the file of the assessing officer for further investigation and to pass an order on merits and in accordance with law. Against that order, the assessee preferred appeal before the Appellate Tribunal, disputing the entire turnover of Rs. 9,84,140 and also the additional sales tax levied therein. It has filed two separate appeals both under the Tamil Nadu General Sales Tax Act and the Tamil Nadu Additional Sales Tax Act, 1970. The Tribunal passed a common order. Before the Tribunal, the department contended by filing an enhancement petition to tax the sale of softwood at 5 per cent single point, which the Appellate Assistant Commissioner has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e partners by name M.P.V. Ayyanar Raja. The assessee contended that Thiru M.P.V. Ayyanar Raja in his individual capacity has purchased those goods from the Forest Department, after paying the tax and then, gave the timber to the assessee. The assessee is only a second dealer and therefore not liable to tax, according to the Tribunal. Under item 84 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959, in case of timber and bamboos purchased by the forest contractor in the auction of the forest coupe conducted by the Forest Department, the sale by such contractor of the timber shall be deemed to be the first sale. The assessee Bappu Raja and Company is not a forest contractor. Only the partner Ayyanar Raja was the contractor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave certificate that it is a fuel coupe. The assessment records in the present cases reveal that the assessee is a dealer in firewood and timber. The wood under dispute, wattle, eucalyptus, blue gum, can be used as timber as well as firewood and therefore, the wood is timber or firewood has to be decided with reference to the purchase and sale records only and the judgment referred to by the department will not apply to the assessee's case, as the assessee is not an exclusive dealer in timber. The assessee did not advance any argument regarding the turnover disputed in items 13 and 14 mentioned above. Hence, the levy of tax on these items was confirmed by the Tribunal. 6.. The Appellate Assistant Commissioner has held while remanding the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 to item 84 of the First Schedule to the Tamil Nadu General Sales Tax Act and the assessee is liable to pay the tax. The assessee is rightly subjected to tax by the assessing authority to single Reported as Vasan and Sons v. State of Tamil Nadu [1982] 51 STC 353 (Mad.). point as first dealer. The records would go to show that the purchases were on behalf of the firm only and not by the individual partner for any of his own business dealings. The Tribunal ought to have allowed the enhancement petition filed by the Revenue on the ground that the turnover of softwood should be subjected to single point tax under item 84 of the First Schedule. Karuvai purchases were not utilised as firewood. 8.. We have heard the learned Additional Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irm would be a second sale. Hence, the sale value of eucalyptus should also be exempted as second sales. 9.. According to the department, the Appellate Assistant Commissioner was not correct in holding that softwood is not timber and would not fall under entry 84 of the First Schedule. Hence, the enhancement petition was filed to tax the sale of softwood at single point at 5 per cent. Under this head, the sale of wattle, blue gum should be taxed at single point rate as timber. The above goods can be classified as firewood or as timber, according to the Tribunal and even if it is treated as timber, the assessee is only a second dealer and the transaction cannot be taxed. It is on this ground, the enhancement petition was dismissed. The rea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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