Proof of actual sale is essential in sales tax matters; forest lease value alone cannot establish taxable turnover.

Sales tax liability arises only on proof of actual sale, and the revenue must establish taxable transactions by material on record. An estimate based on the lease value of forest coupes was insufficient because the record contained no finding or evidence that timber had in fact been sold during the relevant quarters. The assessee's status as a forest lessee did not, by itself, justify an inference of sale, and no presumption could be drawn merely from the existence of forest leases. The initial burden to prove taxable sales therefore remained undischarged.

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Issues: Whether the revenue had material on record to hold that the assessee had effected any sale of timber at all.

Analysis: Liability under the sales tax law arises only on proof of a sale. The assessments proceeded on an estimate based on the lease value of forest coupes, but the record contained no finding or material showing that actual sales of timber had been effected during the relevant quarters. The assessee's position as a forest lessee did not, by itself, justify an inference that sales had taken place, and no presumption of sale could be raised merely from the existence of forest leases. The revenue, therefore, failed to discharge the initial burden of establishing taxable sales.

Conclusion: No material was available to hold that the assessee had effected any sale of timber at all, and the answer to the question was against the revenue and in favour of the assessee.

Ratio Decidendi: In sales tax proceedings, the revenue must establish actual sales by material on record, and taxable liability cannot be inferred merely from the existence of a forest lease or from an estimated turnover based on lease value.

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