Nature of commodity for sales tax had to be independently determined before levy; appellate order was set aside and remanded.

Tax liability under the Kerala General Sales Tax Act depended on a prior determination of the true nature of the commodity sold, namely whether it was firewood or timber. The assessing authority, first appellate authority and Tribunal had proceeded mainly on the assessee's description and had not independently and conclusively adjudicated that foundational factual issue. Because the nature of the commodity was essential to the levy, the appellate decision could not stand. The impugned order was set aside and the matter was remitted to the Tribunal for fresh determination of the commodity's nature and the consequential sales tax liability.

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Issues: Whether the authorities had adjudicated the essential question as to the nature of the commodity sold for levy of sales tax under the Kerala General Sales Tax Act, 1963, and whether the appellate order required interference and remand.

Analysis: The determination of tax liability depended on first ascertaining whether the commodity was firewood or timber. The orders of the assessing authority, the first appellate authority, and the Tribunal proceeded on the description given by the assessee and did not independently and conclusively determine the true nature of the article. Since this foundational factual issue had not been properly examined or adjudicated, the appellate decision could not stand.

Conclusion: The impugned order was set aside and the matter was remitted to the Tribunal for fresh determination of the nature of the commodity and consequential levy.

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