SOSAMMA POTHEN Vs. STATE OF KERALA

JUDGEMENT

(1.) The questions to be considered in the above two revision petitions are the same, even though the petitioners and the assessment years are different. The question to be considered is whether the rubber trees sold by the petitioners are liable to be taxed.

(2.) T.R.C 59 of 1989 is concerned with the assessment year 1981-82. The matter arises under the Kerala General Sales Tax Act. The assessee had sold rubber trees earmarked to be cut and removed with a view to replanting the area. The assessee contended that the standing rubber trees are not timber and the sale value of the same will not form part of the turnover. But the assessing officer took the view that an estate owner felling standing rubber trees will come within the definition of the term 'Dealer' and that the sale value will form part of the turnover and that the standing rubber trees were nothing else than timber. The Sales Tax Officer relied on a bench decision of this Court in George P. Mathew v. State of Kerala ( 1980 KLT 312 ). On appeal the Appellate Assistant Commissioner also held that the decision in George P. Mathew v. State of Kerala (1980 KLT 312) is apt and it is applicable to the case of the petitioner. It was held in that case that the contract to cut and sell trees standing on land was a sale of goods and therefore the same would attract the definition of the Act. The assessee filed second appeal before the Tribunal and the Tribunal after noting the bench decision of this Court, on identical circumstances, confirmed the order of the authorities below and dismissed the appeal.

(3.) T.R.C. 60 of 1989 is concerned, with the assessment year 1983-84. There also the assessee sold the entire old rubber trees to be cut and removed with a view to replant the said area. The Sales Tax Officer brought the turnover to sales tax following the decision of this Court in George P. Mathew v. State of Kerala (1980 KLT 312). The assessee's appeal to the Appellate Assistant Commissioner and further appeal before the Tribunal were also dismissed.