Timber and veneer are distinct commodities under Karnataka sales tax law; veneers qualified for concessional treatment.

For purposes of Explanation 1 to section 5-A of the Karnataka Sales Tax Act, the term "timber" was treated in its ordinary and commercial sense, and not by reference to the broader classification in the Second Schedule. Timber and veneer were regarded as distinct commercial commodities: timber meant wood in its accepted form, while veneer was a thin sheet manufactured from timber and sold separately. The later insertion of the words "other than veneers" was described as explanatory and intended to remove confusion created by departmental clarification. On that basis, veneers were not included within "timber" for section 5-A, and sales of veneers against form No. 37 were eligible for concessional tax treatment.

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Issues: Whether, for the purpose of Explanation 1 to section 5-A of the Karnataka Sales Tax Act, 1957, the word "timber" included "veneers", and whether sales of veneers against form No. 37 were entitled to concessional tax treatment.

Analysis: The expression "timber" in the exemption provision had to be understood in its ordinary and commercial sense. Timber and veneer were found to be distinct commodities in common parlance; timber denoted wood in its accepted form, while veneer was a thin sheet manufactured from timber and sold as a different commercial article. The clubbing of timber and products manufactured from it in entry 45 of the Second Schedule did not define timber for all purposes of the Act. Section 5-A contained a non obstante clause, so its expression had to be construed on its own language rather than by borrowing meaning from section 5 or the Second Schedule. The later insertion of the words "other than veneers" was treated as explanatory and meant to remove the confusion created by departmental clarifications.

Conclusion: Veneers were not included in "timber" for the purpose of Explanation 1 to section 5-A, and assessees selling veneers against form No. 37 were entitled to the concessional rate of tax.

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