Spontaneous forest trees are not goods produced by the seller for sales tax dealer classification

A person selling trees of spontaneous growth in a private forest was not treated as a dealer under the Kerala General Sales Tax Act because the inclusive definition covered only goods produced by the seller through manufacture, agriculture, horticulture or a similar process. The word "otherwise" was read ejusdem generis with those preceding terms and was held to require production in the sense of bringing goods into existence through volition and effort. As the seller had done nothing to produce the trees and the cutting was undertaken by a contractor, the sale did not attract sales tax.

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Issues: Whether a person who owns a private forest and sells trees of spontaneous growth therein is a "dealer" within the meaning of section 2(viii) of the Kerala General Sales Tax Act, 1963.

Analysis: To fall within the inclusive part of the definition, the seller must be one who sells goods produced by him by manufacture, agriculture, horticulture or otherwise. Trees that grow spontaneously and are not planted or brought into existence by the seller cannot be treated as goods produced by him by agriculture or horticulture. The expression "otherwise" was read ejusdem generis with the preceding words and was held to require the element of production, meaning the bringing forth or bringing into existence of goods by some process involving volition and effort. On the findings recorded, the respondent had done nothing towards the production of the trees, and the cutting itself was carried out by a contractor.

Conclusion: The respondent was not a dealer within section 2(viii) and was not liable to sales tax on the sale of trees of spontaneous growth.

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