Spontaneous forest produce and multiple-point sales tax: limited cutting rights give no land interest, and resale remains taxable.

Wild forest bamboo of spontaneous growth was not agricultural or horticultural produce grown on land in which the assessee had an interest, because the exemption was confined to produce resulting from human effort and the contract granted only a limited right to enter and cut bamboos, not an interest in land. The bamboo sale proceeds therefore remained in turnover. Under a multiple-point sales tax scheme, payment of tax at an earlier stage did not bar levy on a later resale, so the assessee was liable on its own sale as seller. The petition failed.

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Issues: (i) Whether the proceeds from sale of spontaneously grown bamboos in a Government forest were excluded from turnover as agricultural or horticultural produce grown on land in which the assessee had an interest. (ii) Whether sales tax could be levied again on the assessee despite the Government having already collected tax when the contract was entered into.

Issue (i): Whether the proceeds from sale of spontaneously grown bamboos in a Government forest were excluded from turnover as agricultural or horticultural produce grown on land in which the assessee had an interest.

Analysis: The exemption covered produce of land resulting from human effort such as tilling, planting, watering, weeding, pruning, or harvesting. The bamboos were of wild or spontaneous growth and no human effort was shown in their rearing. The contract did not convey a lease or any interest in land. It only granted a limited right to enter the forest and cut specified bamboos within a short period, which was merely ancillary to the real transaction.

Conclusion: The bamboo sale proceeds were not excluded from turnover, and this contention failed.

Issue (ii): Whether sales tax could be levied again on the assessee despite the Government having already collected tax when the contract was entered into.

Analysis: The Act contemplated tax at successive points of sale in the cases covered by it, and payment of tax at one stage did not bar levy at another sale. The Government was entitled to collect tax on its sale, and when the assessee resold the goods he became liable to pay tax on that sale as seller.

Conclusion: The second levy was permissible and this contention also failed.

Final Conclusion: The assessee was liable to include the bamboo sale proceeds in turnover and was not exempt from the sales tax levy on resale, so the petition failed.

Ratio Decidendi: Wild forest produce of spontaneous growth is not agricultural or horticultural produce grown on land, and a limited right to cut and remove such produce does not amount to an interest in land; sales tax may also be levied at each taxable point of sale under a multiple-point scheme.

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