STATE OF GUJARAT Vs. KESHAVLAL MANGUBHAI

JUDGEMENT

(1.) IN this reference the Tribunal has referred the following two questions under section 61 of the Bombay Sales Tax Act, 1959, hereinafter referred to as "the Act". " (1) Whether on the facts and in the circumstances of the case, babul wood purchased by the opponents would be covered by entry 19 of Schedule A of the Bombay Sales Tax Act, 1959 ? (2) If the answer to the first question is in the negative, whether the babul wood would be covered by entry 32 of the said Act ?"

(2.) THE short facts which have given rise to this reference are as under :- THE opponents-assessees are manufacturers of agricultural implements and parts for bullock-carts. For the purpose of manufacturing agricultural implements and parts for bullock-carts, the opponents purchased babul wood. THE said purchase consisted of the trunk, twigs and parts of the tree, all loaded in a cart and this cart-load is known as hel. THE wood purchased by the opponents was mostly and substantially used in the manufacture of agricultural implements and the residue was sold as firewood. On these facts the Sales Tax Officer assessed the opponents and the Assistant Commissioner dismissed their appeal on the ground that the babul wood was mainly and substantially used for the manufacture of agricultural implements and it was, therefore, "timber" falling within entry 32 of Schedule C and was not covered in the entry of firewood in entry 19 of Schedule A. In appeal the Tribunal has, however, reversed that decision holding that the opponents had purchased in this case not timber but firewood. THE Tribunal has, therefore, referred the aforesaid two questions to this Court.

(3.) MR. Mody also argued that in any event this commodity would not fall within the definition of the term "timber". We are referred to a standard work of reference, "bhagvadogomanda-1" for the Gujarati term for "babul-Baval" at page 3445, which states that it is used for agricultural implements, as building material or timber for beams, door and window frames as it is not corroded by ants or moth and as the wood also does not get spoilt in water. It is also used as firewood. Thus, the Tribunal was right in mentioning all these uses of babul wood. That itself makes it clear that babul wood, which was standing timber when the tree was standing on land and which became fallen timber and was purchased as such, continued to retain its essential character of "timber". Thus, it cannot fall under any residuary article as it falls under specific entry 32 of Schedule C. In that view of the matter, our answer in the present reference so far as question No. (1) is concerned is in the negative; while so far as question No. (2) is concerned it is in the affirmative. This reference is accordingly disposed of. The assessee shall pay the costs of this reference to the State of Gujarat.