STATE OF TAMILNADU Vs. SHAMEEM TRADERS

JUDGEMENT

(1.) THE Revenue has come forward with this revision challenging the order of the Sales Tax Appellate Tribunal, dated 31.01.2001 in a batch of appeals. THE question of law raised in this revision is as to whether in the facts and circumstances of the case, the Tribunal has erred in law by not treating pulpwood as timber falling under the Sixth schedule to the Tamil Nadu General Sales Tax Act, 1959.

(2.) THE dispute involved in this revision relates to the sale of pulpwood by the assessee at concessional rate against Form XVII declaration, which would be available to the assessee only in respect of goods including consumables, packing materials and labels excluding plant and machinery, which are found in the First schedule. THE Appellate Assistant Commissioner however held that nowhere in Section 3(3) of the Act, it is stated that the selling dealers' right to the benefit of Form XVII can be restricted to the goods mentioned in the First Schedule. According to the Appellate Assistant Commissioner, it is a buying dealer, who has to comply with the condition of using the raw materials purchased for manufacture of goods specified in the First Schedule for the benefit of usage of Form XVII. THE Tribunal relied upon the decision of this Court reported in 102 STC 70 and held that a Selling Agent can sell any goods including consumables, packing materials and labels excluding plant and machinery and therefore, the order of the Appellate Assistant Commissioner was justified. Having perused Section 3(3) of the Act read along with second proviso, we are also convinced with the conclusion of the Appellate Assistant Commissioner as well as that of the Tribunal.

(3.) THIS very issue came up for consideration earlier and after referring to all the earlier decisions, the First Bench of this Court in the decision reported in 148 (2006) STC 419 (Sree Murugan Engineering Products vs. Commercial Tax Officer, Coimbatore), has held as under: