Timber classification for sales tax: pencil slats treated as timber in altered form, so levy under section 5A failed.

Whether pencil slats made from wooden planks remained timber for sales tax purposes was treated primarily as a question of fact. The Tribunal, considering their size, shape and quality, found that the goods were only timber cut into small pieces of plank. Following the Supreme Court and the Court's earlier decision, that factual conclusion was accepted, and the levy under section 5A of the Kerala General Sales Tax Act was held not attracted. The challenge to the Tribunal's view therefore failed, and tax was not leviable on the purchase value of timber converted into pencil slats.

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Issues: Whether pencil slats, being small pieces of wooden planks, could be treated as timber so as to attract levy under section 5A of the Kerala General Sales Tax Act, 1963.

Analysis: The Tribunal had examined the goods and, having regard to their size, shape and quality, found that pencil slats were nothing more than timber cut into small pieces of plank. That finding was treated as one largely of fact. In the light of the Supreme Court and the Court's earlier decision, the conclusion was that the levy under section 5A was not attracted.

Conclusion: The challenge to the Tribunal's view failed and the levy under section 5A was held not leviable on the purchase value of timber converted into pencil slats.

Ratio Decidendi: Whether a commodity is timber for the purpose of sales tax liability is primarily a question of fact, and where the fact-finding authority concludes on the materials that the article remains timber in altered form, the levy under section 5A is not attracted.

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