1980 (2) TMI 236

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....x at 3 per cent on the turnover of the assessee relating to purchase of firewood which was admittedly put to use as raw material for the manufacture of hardboard and directing the assessing authority to tax the disputed turnover at one per cent.   2.. The assessment years concerned are 1971-72, 1972-73 and 1973-74. The assessee-The Western India Plywoods (P.) Limited, Baliapatam-is engaged, among other things, in the manufacture of hardboard. Large quantities of material described as firewood were purchased by the assessee during the assessment years in question and a substantial portion thereof had been admittedly used as raw material for the manufacture of hardboard. "Firewood" is taxable only at the concessional rate of one per c....

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....ppeals holding that the material purchased by the assessee was firewood falling within the description contained in item No. 55 of the First Schedule and the mere fact that it had been used as raw material for the manufacture of hardboard did not take it out of the scope of the said item so as to deprive the assessee of the benefit of the confessional rate of taxation at one per cent. Pointing out that the assessing authority itself had treated part of the very same material as firewood on the ground that the said quantity had been actually used as fuel, the Tribunal held that the balance quantity of the same material could not be regarded as a different commodity falling outside the scope of item No. 55 of the First Schedule merely because....

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....nd Co.[1980] 45 S.T.C. 58 (S.C.). as lending support to his contention that the test to be applied for determining whether a particular commodity falls within the description given in an item in the First Schedule is the user to which the commodity is actually put. We are not able to regard the decision as an authority laying down such a wide proposition as applicable in all cases. In the case before the Supreme Court the question that fell to be considered was whether G.I. pipes came within the description "water supply and sanitary fitting" occurring in entry 26A of the First Schedule to the Act. The description contained in the said entry. was such as to make its applicability in relation to any particular article dependent on its use as....