Concessional sales tax on pulpwood upheld where precedent excluded timber classification and Form XVII declarations supported the lower rate.

Pulpwood was held to qualify for the concessional levy under section 3(3) of the Tamil Nadu General Sales Tax Act, 1959, because binding precedent treated it as outside the meaning of timber in the relevant context and Form XVII declarations supported the claim. The Tribunal's reliance on earlier decisions was also reinforced by a Government Order waiving the differential concessional tax for the relevant period. On that basis, no interference was warranted with the Tribunal's view, and the reduced rate of 3% on the disputed turnover was sustained.

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Issues: Whether the Tribunal was right in holding that the sale of pulpwood was eligible for concessional tax at 3% under section 3(3) of the Tamil Nadu General Sales Tax Act, 1959 and in restoring the lower rate on the disputed turnover.

Analysis: The disputed commodity was examined in the light of the earlier decisions relied upon by the Tribunal, including the authoritative view that pulpwood, in the relevant context, did not fall within the meaning of timber so as to deny the concessional benefit claimed on the basis of Form XVII declarations. The Court also noted that the Tribunal had followed binding precedent and that the Government Order granting waiver of the differential concessional tax for the relevant period reinforced the same position. In these circumstances, no ground was found to interfere with the Tribunal's view that the concessional levy under section 3(3) applied.

Conclusion: The revision failed and the Tribunal's order reducing the levy to 3% was sustained.

Final Conclusion: The tax revision was rejected, and the assessee retained the concessional rate of tax on the disputed turnover.

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