Rajes Kumar, J. - (1.) PRESENT revision under Section 11 of U.P. Trade Tax Act (hereinafter referred to as "Act") is directed against the order of Tribunal dated 6 -10 -1998 for the assessment year 1987 -88. The short question involved in the present case is that whether wood -wool is a product of timber, liable to tax @ 6% or as an unclassified item @ 8%. Assessing authority taxed the turnover of wood -wool @ 8% treating it as unclassified item. Order of the assessing authority has been confirmed in appeal. Tribunal, however, has accepted the plea of the dealer/opposite party (hereinafter referred to as "Dealer") and held wood -wool liable to tax @ 6% as product of timber. Heard learned counsel for the parties.
(2.) RELEVANT Notification No. ST -II -5785/X -10(1) -80 -U.P. Act XV/48 -Order -81, dated 7 -9 -1981 relating to the product of timber or wood -wool is reproduced herein below: Notification No. ST -II -5785/X -10(1) -80 -U.P. Act XV/48 -Order -81, dated 7 -9 -1981 Wood wool is obtained as a result of grinding of timber or wood. It is mainly used for packing and also in cooler. Since it is obtained from the timber or wood as a result of some action and operation, it is product of timber or wood liable to tax @ 6% under the aforesaid Notification No. ST -II -5785/X -10(1) -80 -U.P. Act XV/48 -Order -81, dated 7 -9 -1981.
(3.) IN the case of CST v. M/s. Agrawal Wooden Products, reported in, 1989 UPTC 557, Learned Single Judge of this Court held that small pieces of timber of various sizes between 1/2" x 2" as a timber product. Learned Single Judge held as follows: "In the present case all that the assessee was doing was to make small pieces of timber of various sizes between 1/2" x 2". The Tribunal on a consideration of the said Notification dated 30 -5 -1975 has on the facts of this case taken the view that the wooden batton in question is a timber product. This necessitates us to consider as to what is the meaning of the word "product" as occurring in the said notification. Admittedly the word "product" has not been defined under the Act or the rules made thereunder. According to the Chamber's Twentieth Century dictionary, it means a thing produced; a result; a work; offspring; a quantity got by multiplying. These meanings suggest a direct connection between the things and its product. The thing must be productive before it can have a product. In other words, something which naturally and directly grows out of another thing can alone be called a product of that other thing. Therefore, a product of timber must relate to the productivity from timber i.e., something produced out of timber. The cut sizes of wooden batton in question are, therefore, according to the said dictionary meaning products of timber. There is yet another reason to come to the same conclusion and it is this that the wooden batton in question is a thing which is produced by an action, operation or work by cutting the timber into certain specified sizes. Therefore, when wooden batton is produced out of wood by some action, operation or work, the commodity in question become a timber product. In this view of the matter, in my opinion Tribunal is not in error in taking the view that the commodity in dispute is a timber product.";