Timber taxability depended on notification date, limiting levy to the post-1 December 1998 period and requiring reassessment.

Timber was brought into the tax net only from 1 December 1998 under the relevant notification, so it could not be taxed for assessment year 1997-98. For assessment year 1998-99, liability could arise only for the period from 1 December 1998 to 31 March 1999, not for the full year. The rectification-based levy and related assessment orders therefore could not stand in full, and the later-period liability required fresh examination by the assessing authority.

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Issues: Whether timber was taxable for the assessment year 1997-98 and taxable only from 1 December 1998 for the assessment year 1998-99 under the relevant notification, and whether the Tribunal's order sustaining the rectification-based levy required interference.

Analysis: The notification under which timber was brought within the tax net was effective only from 1 December 1998. On that basis, timber could not be subjected to tax for the assessment year 1997-98. For the assessment year 1998-99, tax liability could arise only for the period from 1 December 1998 to 31 March 1999. The assessment and rectification orders therefore could not stand in full, and the matter for the later period required fresh examination of the record by the assessing authority.

Conclusion: The revision for the assessment year 1997-98 was allowed, and the revision for the assessment year 1998-99 was partly allowed with the levy confined to the period after 1 December 1998 and remitted for fresh order.

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