ANDAVAR AND COMPANY Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) ASSESSEE is the petitioner. The assessee, Andavar and Company, is a dealer in firewood and pulpwood in Manapparai. By his revised order dated January 10, 1983, the Deputy Commercial Tax Officer, Manapparai, had disallowed exemption already granted on a turnover of Rs. 3, 94, 769. He has also levied additional sales tax. Aggrieved, the assessee filed an appeal before the Appellate Assistant Commissioner (C.T.), Trichy, disputing the assessment of turnover of Rs. 3, 94, 769 and additional sales tax. The assessing authority has revoked the original order by holding that the deduction allowed at the stage of original assessment was not correct. The Appellate Assistant Commissioner has sustained the assessment on a turnover of Rs. 2, 89, 425 allowing deduction on the turnover of Rs. 1, 05, 344 as second sales of timber. Admittedly, the disputed turnover of Rs. 2, 89, 425 is related to sales of firewood and karuvel trees cut from the fuel coupe taken from the Forest Department. The Appellate Assistant Commissioner disallowed exemption relying upon the decision of this Court in Malayalee Stores v. State of Tamil Nadu. On considering the submissions made by learned counsel for the assessee as well as the department representative, the Tribunal held that the assessing authority was correct in revising his original order by holding that the purchase turnover of karuvel trees is assessable at 5 per cent. Accordingly, the order passed by the Appellate Assistant Commissioner sustaining the order passed by the assessing authority was confirmed. It is against that order, the present revision has been preferred by the assessee.

(2.) LEARNED counsel for the petitioner/assessee submitted that in the present case the firewood sold related to cut bits of karuvel trees with bark. The cut bits of karuvel trees are mainly used as firewood and not for other purposes. Karuvel trees are popularly known as firewood trees. The fact that the purchaser Seshasayee Paper Mills used karuvel trees for producing pulp would not mean that karuvel trees are meant for preparing pulp. In order to support that karuvel trees were sold as firewood, the assessee has produced bills issued by the Seshasayee Paper Mills and the delivery note, wherein it was clearly stated that what was purchased was firewood. It was also pointed out that the Government Notification No. (II)(1)/Rev/386(g)/74/March 4, 1974, also exempts firewood from levy of sales tax. In order to support the contentions put forward by the assessee, learned counsel relied upon various decisions. Ultimately, it was submitted that the Tribunal was not correct in upholding the order passed by the Appellate Assistant Commissioner in revising the assessment.

(3.) WE have heard the rival submissions. The fact remains that originally the assessment was made by the assessing officer. In the assessment, sale of karuvel trees was exempted from tax. But in the revised assessment, the assessing officer levied tax and additional tax on the sales turnover of karuvel trees. According to the assessing officer, the sale of karuvel trees cannot be treated as sale of firewood which is exempted under the Government notification. On appeal, the Appellate Assistant Commissioner confirmed the revised assessment made by the assessing officer. On further appeal, the Tribunal confirmed the order passed by the Appellate Assistant Commissioner. The point for consideration in this revision is whether the bits of karuvel trees can be called as firewood.