1968 (3) TMI 95

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... in appeals by the Additional Appellate Assistant Commissioner of Sales Tax, and in revision by the Additional Commissioner of Sales Tax. The applicant seeks a writ of certiorari for quashing these orders of the Additional Appellate Assistant Commissioner of Sales Tax and the Additional Commissioner of Sales Tax, also. 2.. The petitioner-firm took two forest contracts for the extraction and collection of gum from trees growing in certain forest areas in the District of Dhar. The Assistant Sales Tax Officer included in the taxable turnover for the aforesaid two periods the amount that the petitioner had paid as consideration to the State for the two contracts. He rejected the contention of the petitioner that under the two contracts there....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ection 2(r) of the Act, the consideration paid by the petitioner to the Forest Department for purchasing gum could not be deducted as under that definition only the "sale price of goods on which tax is payable at the first point, and which has been subjected to tax in accordance with the provisions of the Act" can be deducted. 4.. In our judgment, the approach of the Sales Tax Authorities to the question was altogether erroneous. These authorities thought that what was sold under the contracts was gum. But this is not so. The contracts entered into by the petitioner and the State no doubt stated that they were for sale and purchase of forest produce. But having regard to the fact that the contracts gave to the petitioner a right to colle....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....a prendre and that it amounts to immovable property as a benefit arising from the land. If a right to rare lac is an interest in immovable property and a right of fishing is also an interest in immovable property, then a fortiori a right to collect and appropriate gum from gum-bearing trees is an interest in immovable property. 5.. If, as we think, there was, under the contracts concluded between the petitioner-firm and the State, no sale of gum as such but only the sale of an interest in immovable property, namely, the right to collect and appropriate gum from trees, the petitioner cannot claim exemption from sales tax on the ground that on sales of gum sales tax being payable on the point of first sale and the first sale being by the S....