Double taxation barred where tree-growth sales already taxed as timber could not be reclassified and taxed again as firewood.

Firewood derived from tree-growth already assessed and taxed as timber could not be subjected to a second levy on the same turnover. The court treated the auctioned tree-growth as one commercial source yielding timber and firewood, and held that the sales arising from the coupe had already been brought to tax on a best judgment basis at the timber rate. As the same turnover could not be split and taxed again under the firewood entry, the additional assessment amounted to double taxation and was unsustainable. The second levy was therefore set aside in favour of the assessee.

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Issues: Whether firewood obtained from tree-growth already assessed as timber could be subjected to a second tax levy as firewood under the relevant sales tax schedule.

Analysis: Tree-growth purchased at auction was treated as comprising the timber and firewood obtainable from it, and not as a separate commercial commodity distinct from the goods yielded on cutting. The assessment machinery had already treated the turnover from the coupe as timber and levied tax at the higher rate on the whole turnover on a best judgment basis. Once the sales arising from the tree-growth had been brought to tax in that manner, the same portion of the turnover could not be picked out again and taxed as firewood. The attempt therefore amounted to taxing the same sales twice, which was inequitable and unsustainable.

Conclusion: The second levy on the firewood was not permissible, and the assessment was set aside in favour of the petitioner.

Ratio Decidendi: Goods derived from the same commercial source cannot be artificially split into separate commodities for repeated taxation where the turnover has already been taxed on the basis of the same sales.

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