A.P.SEN, J. - (1.) THIS is an application for reference under Section 15(2)(b) of the Rajasthan Sales Tax Act, 1954.
(2.) ANAND Wood Industries, Jaipur - hereinafter referred to as the aaseseee, is engaged in the business of manufacture and sale of wooden planks and 'payas' for cots. During the assessment years 1967 -68 and 1968 -69, the assessee purchased as firewood logs and branches of felled trees in lots. Out of there, it utilised the logs for manufacture of planks and 'payas' for cots. The planks and 'payas' were sold within the State as well as in the course of inter -state trade and commerce and outside the State. The assessee has paid sales tax on sales in the course of inter -state trade as well as on sales out side the State. The assessing authority, however, subjected that part of the purchase of firewood which had been used in the manufacture of planks and 'payas' of cots, though purchased along with other logs which were, in fact, sold as firewood, to purchase tax. The break up of the purchase was furnished by the assessee. Upon that basis, the assessing authority imposed purchase tax @ 1% under Section 5C on the purchase price of timber used in the Roods manufactured and sold within the State and at the general rate of 6/7% on the purchase price of timber used in the manufacture of goods sold outside the State. The imposition of purchase tax was affirmed in appeal by the Deputy Commissioner (Appeals) as well as by the Board of Revenue in revision as also in second appeal.
(3.) THE assessee thereafter applied to the Board under Section 15(1) of the Act for making a reference of the question that, since firewood was exempt from sales tax under item 13 of the Schedule to the Act, no purchase tax was payable.;