Standing timber as goods under sales tax law when severance is agreed in the sale contract, retrospectively covered by amendment.

Standing timber agreed to be severed under a contract of sale was treated as "goods" for sales tax purposes because the statutory definition was retrospectively enlarged to include timber to be severed before sale or under the contract of sale. The Court noted that the constitutional expression "sale of goods" carries the same meaning as under the Sale of Goods Act, 1930, under which attached property may be sold if it is to be severed in that manner. On that basis, the transaction fell within the expanded statutory meaning of goods and attracted sales tax.

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Issues: Whether standing timber agreed to be severed under the contract of sale constituted "goods" and therefore attracted sales tax under the Bombay Sales Tax Act, 1959, in view of the retrospective amendment made by Maharashtra Act 15 of 1967.

Analysis: The expression "goods" in the Bombay Sales Tax Act was retrospectively enlarged by the amendment to include standing timber agreed to be severed before sale or under the contract of sale. The constitutional expression "sale of goods" in Entry 54 of List II of the Seventh Schedule carries the same meaning as in the Sale of Goods Act, 1930. Under that Act, things attached to the land may be the subject of sale if they are to be severed before sale or under the contract of sale. Since the timber in question was agreed to be severed under the contract, it fell within the statutory meaning of goods.

Conclusion: Standing timber agreed to be severed under the contract of sale was goods within the meaning of the relevant law, and the sale was liable to tax. The appeal succeeded and the respondent's petition was dismissed.

Ratio Decidendi: Where standing timber is agreed to be severed under the contract of sale, it is "goods" for purposes of sales tax, and a retrospective statutory amendment validly bringing such timber within the definition of goods applies to the transaction.

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